JJB - Stick or Twist

[Frankie 8,146]

Article from the Boss:

 

Today�s the day that the future of JJB may transform from being utterly unknown, to simply being as clear as mud.

 

It�s quarterly rent day today, when JJB and most others have to pay their landlords' rent in advance for the next 3 months. JJB�s banks have given the company extended deadline after extended deadline to repay the millions owed to them. The latest deadline expired yesterday, quite deliberately the day before the rent is due.

 

JJB�s recent history since my last epistle is a trail of bloodshed, incompetence, new hope, intrigue, private jets, CEO suspension, PR leaks, and corporate backstabbing. It would take me all day, really it would ....... Suffice to say that Sir David Jones (he of Next fame) is in charge, he has made massive changes already, however the banks are still growling, the vultures are circling, but JJB might survive. For now.

 

To do so, they need to sell their profitable gym division ââ?¬â?? just over 50 JJB Fitness gyms (together with the attached JJB stores), most of which are in England. Dave Whelan, JJB founder, is the preferred bidder and looks likely to pay something like Ã?£70m; the name would be changed to DW Sports/DW Fitness/or some combination. http://www.dwsportsfitness.com was registered a few weeks ago by the former JJB Marketing associate director who left in February! Wiganââ?¬â?¢s JJB stadium would also change its name accordingly.

 

In the meantime, Mike Ashley (Sports Division and Newcastle United supremo) is trying to scupper the deal, writing to JJB�s landlords, the LSE, Uncle Tom Cobley and all. He is a bad man. A very bad man. And he hates Dave Whelan. He wants Whelan�s deal to fail, JJB put into administration, and pick from the carcass.

 

There will be an announcement today. It will probably be that Dave Whelan has bought the gyms and stores, the banks have got their money, the rents have been paid, and JJB continues. But it just might be that JJB have gone into administration, though there is probably too much at stake, financially and politically, for that to happen today.

 

So if things go to plan today, why does that leave JJBââ?¬â?¢s future as clear as mud ? Well, I did say that the gym division was profitable, very profitable. Together with other forced disposals of profitable stores, that leaves JJB a rump of what is was a year ago, and a loss-making rump at that. Sir David Jones will have a massive task in turning it around in the months and years ahead and save it from eventually going belly up. Can he do it ? If anyone can, he can ââ?¬â?? he has done an excellent clear-out job in the few months since his appointment. Will he do it ? Depends entirely on future spending by customers. And on whether a rumoured Company Voluntary Arrangement is successful in ridding JJB of a further 30 unprofitable stores.

 

So it is down to the wire. In the next few hours there will be much happening, whether it�s a sale to Dave Whelan or Administration. And if Whelan gets his way, who knows whether, and for how long, JJB can subsequently survive. Either way, desperate times.

 

Mud, mud, glorious mud.

[Frankie 8,146]

Stage one

 

DW Stadium Announced

http://www.wiganlatics.co.uk/page/NewsDetail/0,,10429~1602350,00.html

[CammyF 6,779]

SSN reporting that Dave Whelan is looking to take over / purchase some of the remaining (and closed) JJB Shops.

 

Cammy F