JJB in financial trouble

[Bluedell 5,366]

"Auditors to JJB Sports have raised concerns about the sports retailer�s financial situation and warned that the company could go under."

 

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/3084664/JJB-auditors-raises-doubts-about-sports-retailer-as-a-going-concern.html

 

This could have serious implications for us. While the JJB deal was financially good, what happens if they go under? I would assume that we get to keep the upfront payment, but no other retailer will touch that deal with a barge poll and we have sold all of our shops. We may need to start our retail business from scratch again sooner than we expected.

[Frankie 8,190]

Again worrying. On the plus side there would be some prime sporting retail property available at knockdown prices....

[craig 5,199]

If we sold the shops a couple of years ago then we pretty much sold when the market was high. IF we can buy similar properties now we may get them at deep discounted prices, thus making money on them.

 

We would, of course, have to kit them out though which could be a significant outlay.

 

Did the club plan for the eventual termination of the contract and having to establish merchandising again ?

[Bluedell 5,366]

If we sold the shops a couple of years ago then we pretty much sold when the market was high. IF we can buy similar properties now we may get them at deep discounted prices, thus making money on them.

 

We would, of course, have to kit them out though which could be a significant outlay.

 

Did the club plan for the eventual termination of the contract and having to establish merchandising again ?

I think that the shops were short leasehold and therefore we would not have made money when we moved out. It probably costs us the balance of the lease.

 

You would imagine that plans for establishing merchandising again were low down the priority list given it's meant to be so far in the future.