Home / Knowledge / News / Fashion / Sports retailer JJB Sports reports fall in FY results
Sports retailer JJB Sports reports fall in FY results
21
May '09
JJB is publishing its Interim Management Statement relating to the 16 week period to 17 May 2009.

Trading update
Group revenue for the 16 week period to 17 May 2009 was 42.1% lower than the same period last year. On a like-for-like basis (on operating units that have been trading for over 52 weeks) the total revenue was 23.3% lower. This comprises a 25.8% decrease in retail store chain revenue and a 7.1% increase in revenue from the fitness clubs, which were sold on 25 March 2009.

We believe that the decrease in like-for-like retail sales is largely as a result of low stock levels, the negative publicity which has surrounded the Company, and the current retail environment. As a result of our financial difficulties over the last nine months the Company has had to exist with stock levels significantly below the previous year. Many suppliers have been reluctant to supply stock because of the lack of trade credit insurance and the widely held belief that the Company was likely to go into administration. As the lead times between the ordering of product and its delivery can be up to six months we do not anticipate any significant improvement in sales until the 4th quarter of 2009.

The combined gross margin achieved during the same period was 580 basis points lower than the comparative period last year.The stock holding in the retail business is 46.9% lower than at the end of the same period last year. Following the disposal of the fitness clubs business, the Company has been reducing costs to align its cost base with the sports retail focussed shape of the continuing group. This process of cost realignment continues.

Update on restructuring and refinancing
The Company is currently in the process of a restructuring and refinancing programme, full details of which were announced on 25 March 2009 and 6 April 2009, that comprises a CVA proposal and, conditional upon the implementation of the CVA proposal, new financing arrangements. Documentation relating to the CVA proposal was published on 6 April 2009 and the terms of the interconditional company voluntary arrangements of the Company and its wholly-owned subsidiary Blane Leisure were approved by creditors and members at meetings held on 27 and 29 April 2009,
respectively.

The Company currently expects the CVA proposal to be implemented on or around 28 May 2009. Following implementation of the CVA proposal, the new financing arrangements are expected to become available to the Group on or around 1 June 2009. At this time, the standstill arrangements under which the Company is currently operating will be terminated, historical financing arrangements will be repaid and terminated and, pursuant to the shareholder authority granted at the general meeting on 29 April 2009, the Company will issue warrants to Bank of Scotland (BoS), one of the banks offering continuing support, to subscribe for new ordinary shares representing approx 4.5% of the Company's current shares in issue.


Must ReadView All

Tajik textile-apparel exports rise 30% in Jan-Aug 2018

Textiles | On 16th Oct 2018

Tajik textile-apparel exports rise 30% in Jan-Aug 2018

Tajikistan’s production of textile and apparel rose by 30 per cent in ...

Courtesy: Good On You

Apparel/Garments | On 16th Oct 2018

Good On You aims to give consumers access to brand info

Australia based Good On You, an app that provides ratings of over...

Courtesy: Rieter

Textiles | On 16th Oct 2018

Rieter launches new ring and compact spinning machines

Rieter has launched G 37 and G 38, the new ring spinning machines,...

Interviews View All

Dharmendra Shah, Ozone PB Spintex Limited

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Victor Chao, Esmetex

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Akshat Chaudhary,

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Apurva Kothari,

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Rajat Jaipuria,

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search