JJB recovery could take five years
UK sportswear retailer JJB has said its recovery could take up to five years, and has posted more significant losses.
JJB revealed plans to refit 150 stores this year, but said its restructuring would not be “easy or quick” and could take three to five years.
The warning came as JJB reported a 9% increase in adjusted operating losses to £73.9 million in the 52 weeks to January 30. But its pre-tax losses more than doubled to £181.4 million after one-off exceptional items of £108 million.
JJB secured its survival with the help of £96.5 million in funds from major shareholders. The cash will allow the firm to press on with its restructuring, which includes closing 43 unprofitable stores and placing a further 46 under review.
The company is also planning to refit its estate, source new product ranges, re-train its staff and broaden its online range. It has already re-fitted six stores, which have performed 16% above the company average.
Chairman Mike McTighe said: “The restructuring of JJB will not be easy or quick and will most likely take three to five years. The retail environment is challenging, will remain so for some time and we face intense competition.”
