JJB Sports shuts stores as it goes into administration
STAFF at Cheltenham's JJB Sports store were reeling yesterday after being informed the branch would close with the loss of 20 jobs.
Around 2,200 staff at the chain were made redundant after administrators closed 133 stores and agreed to sell 20 remaining outlets to Sports Direct International.
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JJB Sports
Among the outlets to close with immediate effect is the chain's Gloucester Road outlet.
Staff were unavailable to comment yesterday.
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Sports Direct bought the remaining 20 stores, the brand and its website for £23.8 million in a deal that will protect 550 jobs.
But it was a worse-than-expected outcome for JJB staff as Sports Direct was reportedly hoping to safeguard up to 1,500 jobs and buy up to 60 stores.
However, David McCorquodale, corporate finance partner at KPMG, who led the sales process, said the level of cash and further operational restructuring required to rescue a more substantial part of the business was too much risk for most interested parties.
News of the chain's downfall comes after the group was hit hard by the squeeze on consumer spending triggered by the financial crisis and by the stellar performance of rivals. It has been battling for survival since 2008 and – despite closing half its stores – has been unable to revive its fortunes.
Comments
by Michael_AH
Wednesday, October 03 2012, 9:39PM
“Thought they went bust years ago - store at the Peel Centre and the one in Southgate Street have been closed for more years then the Quays have been open”
by Matt1006
Wednesday, October 03 2012, 7:00PM
“SoLeaky - true. Not exactly the most attractive building in the town. Plus immediately behind it is the gutted scrapyard. The whole area needs leveling and tidying up, although probably can't be used for housing given it's history when it was the gas works.
Maybe Tesco would be interested in buying the land, to extend their car park into, ready for their next (inevitable) store extension?”
by SoLeaky
Wednesday, October 03 2012, 5:39PM
“Whilst this is very sad news for the staff,the implications for the longer term may mean the ugly building they were in can be knocked down and another part of the missing link road for
Cheltenham could be built?”