JJB appoints largest stakeholder to board
Struggling UK-based sportswear retailer JJB Sports has appointed Richard Bernstein, founder of Crystal Amber Fund, which has a 7.12% stake in the company, to the board.
Mr Bernstein is the first shareholder to take up the right to hold a board position which JJB offered during its restructuring earlier this year. Harris Associates and Crystal Amber are JJB’s two biggest shareholders and early this year managed to secure the necessary financial back to warrant the future of the company.
Mr Bernstein has been a strong supporter of the chain’s restructuring programme and will now sit on JJB’s remuneration committee and will chair a new corporate social responsibility committee at the company. Chief executive Keith Jones and non-executive director Sir Matthew Pinsent will also be on the CSR committee.
JJB Sports remuneration committee chairman David Adams said: “Richard has much to add to the workings of the remuneration committee as we seek to incentivise our senior executives to meet the stretching targets we have set.”
Mike McTighe, chairman of JJB, said: “He brings significant experience and insight and I am looking forward to his contribution and working with him on the turnaround of JJB.”
JJB investors, including activist hedge fund Crystal Amber and Microsoft billionaire Bill Gates, voted overwhelmingly to issue more than 160 million new shares, pumping £65 million into the ailing chain in late April 2011. The emergency rescue plan will see JJB close 43 unprofitable stores, place a further 46 under review and move to monthly rental payments.
The company had already secured the support of its four biggest shareholders for the fundraising, including the Bill and Melinda Gates Foundation. The move, which follows an additional £31.5 million raised earlier this year, also guarantees a banking facility offered by lenders Bank of Scotland until 2014.
