JJB Sports, the struggling U.K. sporting goods chain, said David Jones, chairman and architect of its rescue, is stepping down to continue his long-running battle against Parkinson's Disease. The news came as JJB, which saw suppliers hold back shipments as the chain incurred liquidity issues last year, posted further falls in sales and gross margins, albeit at a slower rate.
The firm said on Thursday that Jones, a former chief executive of fashion retailer Next who has suffered from the debilitating neurodegenerative disease since 1982, will step down as chairman on January 31 but will remain a non-executive director.
Last year, as JJB teetered on the brink of administration, Jones steered the firm through the 83 million pounds ($131.8 million) sale of its fitness clubs, a debt restructuring with creditors and a 100 million pound ($160 million) capital raising.
John Clare, the former CEO of electrics retailer DSG International and JJB's senior independent director, will be acting chairman until a permanent appointment is made. Last month, JJB said DSG's retail director, Keith Jones, will be its new CEO but he does not start until March 1.
JJB said sales at stores open over a year fell 21% in the three weeks to January 24, taking the cumulative fall for the 52 weeks to January 24 to 37%. Total sales slumped 51%.
The firm said its second-half gross margin of 40.4% was 260 basis points lower than the comparative period last year, but 6.4% better than the first half.
With its stock position “steadily improving,” it was on target to be fully stocked by April 2010, in time for Easter and the soccer World Cup.
JJB has also appointed two new non-executive directors — David Adams, the former deputy chief executive of House of Fraser, and Matthew Pinsent, the quadruple Olympic gold medallist in rowing who is now a broadcaster and journalist.
