Crisis as JJB Sports sales slide

RETAILER JJB Sports today admitted to tumbling sales and announced a sweeping review of the business that could result in a huge sell-off and closure programme.

The group, whose founder and chairman Dave Whelan abandoned a management buyout attempt last month, said like-for-like sales at its JJB chain tumbled 3.4% in the past six months while profit margins crashed after a half-price sale to clear autumn and winter ranges.

Shareholders have been demanding the group reconsider its strategy since its unpopular decision last year to buy discount chain TJ Hughes. In a statement possibly hinting at a sale of the TJ operation, the group said its review would look at the 'themes of concentrating the company's attention on its core business'.

Like-for-like sales at TJ were down 1%, although attempts by JJB to improve margins have started to bear fruit.

Initially in the review, JJB looks set to scrap remaining international operations and High Street stores. Today it said it was closing a site in Amsterdam, shutting its Sports Division store on London's Oxford Street and ditching plans to open a massive outlet in the old Oxford Street C&A, all at a cost of £4m. It is also seeking ways of giving cash back to shareholders.

Despite his age of 67, and having had his £517m takeover offer spurned, Whelan told today's annual general meeting he was here to stay. 'While I was disappointed with this outcome to the offer, it in no way affects my determination to continue to contribute fully to achieve the future success of JJB.'