JJB Sports has moved its health club division off its books, while also removing CEO Chris Ronnie from the corner office. Among all those shifts, the company also reiterated its earlier guidance of a 2008 loss of between £5 million ($7.3 million) and £10 million ($14.6 million) before tax and one-time items. The British retailer also reported that comparable store sales for the 10 weeks through March 23 had declined 22.5% from the same period last year.
In the health club division deal, JJB reached an agreement to sell the business for £83.5 million ($121 million) to Dave Whelan, the retailer's founder, to help pay down debt.
Meanwhile, CEO Chris Ronnies termination took effect immediately with the company attributing the decision to “gross misconduct,” without giving more details. Ronnie was suspended in January, when JJB began probing liquidators' seizure of his shares in a transaction linked to a failed Icelandic bank.
JJB also said it is seeking an agreement with creditors that would halt rent payments on about 140 closed stores.