Troubled retailer JJB Sports has announced a 17.7% falls in like for like sales at its stores in the 6 months to July 31st. The company sought agreement with its landlords to close a further 43 stores as an amendment to its earlier company voluntary arrangement.
We have blogged on the JJB CVA before as this arrangement has been used to shut down poorly performing stores for the benefit of the whole company.
So what now for JJB?
The likes of JD Sports and Sports Direct are putting severe pressure on the firm and both of those companies seem to be thriving. However, JJB Sports did say that the falling revenues were a result of "selling out old and obsolete stock" and I suppose the saying is that "things will get worse before they get better!"
In any restructure and rescue plan trading can be tough and sales may well suffer at first as the new structure and disciplines bed in.
That said, Christmas is key and by January/Feb 2012 it will be clearer whether JJB Sports has a better future in 2012.