Losses widen at JJB Sports

Thu, Sep 24, 2009, 01:00

UK sports retailer JJB Sports said its first-half loss widened as the company lacked enough merchandise to sell.

The net loss from continuing and discontinued operations was £27.2 million in the six months ended July 26th, from a loss of £263,000 in the same period a year earlier.

In July, JJB, which has a voluntary arrangement with creditors, said it was considering options including a share sale to raise money as it struggled to make a turnaround. Sales plunged earlier this year as inventory levels dropped because suppliers were concerned it may go into administration.

“Today’s announcement shows a marked decline in ongoing retail operations largely because of stock shortages in our stores during the period,” chairman David Jones said in a statement. “We are confident that the actions we have taken during the period to restructure the business will allow us to move forward and rebuild our stock inventory by the first quarter of 2010.”

Bloomberg