David Prosser: JJB steps back from the brink – for now
Wednesday 23 March 2011
Outlook So JJB lives to fight another day. That it is not shutting up shop in the face of the problems that have plagued it in recent times is a tribute to the tenacity of its management. KPMG, its accountant, also deserves congratulations for the imagination it showed in coming up with a company voluntary arrangement (CVA) that, while unpalatable for landlords, at least offered them some upside when (or if) JJB returns to health. That was an advance on the detail of other CVAs that the retail sector has come up with in the past.
Still, a much bigger battle is yet to come for this retailer. JJB is now staking its future on a business model that is being trialled in six stores where the old format has been overhauled. It says the early results from the trials are promising, but it will be quite some trick to prove that JJB can compete with Sports Direct, the stellar performer of the sector, while still coping with a cost base that was built up around a much larger network of stores.
JJB is blessed in having a supportive set of shareholders, which are committed to its next fund-raising. For the sake of those investors, as well as employees and landlords alike, let us hope that despite the deteriorating high-street environment, they do not find they have simply thrown good money after bad.
- 1 The difference between a migrant and refugee, in one sentence
- 2 Miley Cyrus calls out hypocrisy of women’s nipples being taboo
- 3 iPhone 5c to be discontinued, no iPhone 6c to replace it
- 4 Jozef Wesołowski: Former Catholic archbishop found dead ahead of child sexual abuse trial
- 5 Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Spain accused of 'provocation' after letting Russian submarine refuel off Gibraltar
Allonautilus scrobiculatus: World's 'rarest' creature spotted for only the third time ever
Miley Cyrus address Robin Thicke VMA controversy: ‘He wanted me as naked as possible, but I got the heat because I’m a woman’
Miley Cyrus calls out hypocrisy of women’s nipples being taboo
Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...