Friday 24 December 2010
JJB sports - for how long??
JJB sports has been commented on here previously. It is already in breach of banking agreements, and in a statement early in December when it announced a profits warning it said it was relying on a good Christmas trade. Well with the snow & their many out-of-town locations I guess Christmas trade has not been great. So now they have announced that their chairman John Clare will step down with immediate effect - John Clare is a very experienced retailer if not the most dynamic; his departure is surely indicative of either Clares' lack of belief in the future of the company or board level conflict - either paint a bleak picture. They have also gone cap in hand today to shareholders asking for £31.5m to help them stay afloat. Surely there is the gamblers disease here somewhere - pouring bad money after bad in the hope of success. Isn't it right to call time on JJB now??
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And The Daily Telegraph report that JJB shares have lost 83% of their value within the last year.
ReplyDeleteJohn Clare only took over from Sir David Jones in early 2010 so I suppose this lack of board stability will do nothing for the chances of improved performance, going forward
And today they are asking shareholders for a further £50m. I must be missing something somewhere - why would any investor throw £50m in this direction?
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