Can Fresh Management Save JJB Sports?

JJB is one of several struggling national retail chains. It has just appointed new senior management in a last-ditch attempt to recover profitability and generate enough cash flow to service its large bank debt burden.

Sir David Jones, the man who saved clothing retailer Next back in the previous recession, has been brough in as Executive Chairman. To some business students that might sound like a strange job title. Doesn’t the Chairman simply make sure the Board of Directors operates effectively? The answer is yes. But as Executive Chairman, Sir David will be responsible for leading the business on a day-to-day basis, working alongside the existing CEO (for now!).

It sounds like JJB has been granted a short-term reprieve from its banks after paying them £20m. However, the challenge now is to turn the JJB business around in what is likely to be the toughest retailing conditions for several decades.

Sir David and his team have their work cut out. You might have visited a JJB shop in the run-up to Christmas. I did - the main JJB store in the centre of Leeds. A`pleasant or worthwhile shopping experience is was not. The store was, frankly, a shambles. Stock piled high, most of it complete tat and heavily discounted. Much of it seemed damaged too. The staff (not that there were many working there just three days before Christmas) seemed disinterested and demotivated. The shop was almost empty at 10.30 a.m. on what should be one of the busiest shopping days of the year.

I got the impression of a retail format that has become tired and of a business that is in decline. It can’t decide whether it is selling genuine branded sportswear & equipment (i.e. a specialist retailer) or whether it is just a discount leisurewear format. It will fascinating to see whether Sir David can rub some of his retail magic onto the JJB business - and whether the banks will grant him time to achieve the turnaround.