New boss at JJB Sports as sales deteriorate

Struggling UK sportswear retailer JJB Sports warned that sales have fallen materially short of expectations since its last update in April as trading became increasingly tough.

Group like-for-like sales fell by 8% for the 22 weeks ended 1 July 2012.

JJB said trading deteriorated particularly during May and June when the expected peak in sales of replica football kits and other products, following the European Football Championships, did not materialise to the extent anticipated.

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Sales were further hit by the poor early summer weather, with seasonal product the worse affected.

The group, which managed to stave off administration a year ago, partly through raising £65m in capital from shareholders, said net debt was £15.4m at the start of July 2012.

In a separate statement JJB announced the appointment of Robert Corliss as deputy chairman in a bid to accelerate the turnaround of the business.

Corliss has previously been Director of the National Retail Federation (NRF) and a Director of The World Federation of the Sporting Goods Industry.

Following a short handover he will become chairman with effect from 1 September 2012 succeeding Mike McTighe, the group said.

Commenting on the appointment chairman Mike McTighe said: "His deep US and European sports retailing background is exactly what we require right now."

Corliss added: "JJB has been through some difficult times yet it is clear that there is a real market opportunity for a national authentic sports retailer here in the UK. JJB can be that retailer and I'm energised by the prospect of leading the company through the next phase of its turnaround."

CJ