JJB Sports investors lose patience with management
JJB Sports, who are officially 'knackered', are running out of time and favour as leading shareholders decided enough was enough and that a major restructuring was needed after all patience with management was lost.
Around 80 of the JJB's 180 shops could be shut down in a move that shows that shareholders can no longer take the poor performance of the management.
Invesco, who own 34pc of JJB’s equity, apparently wants to buy the sports retailer’s outstanding debt from Lloyds bank in a move to get control and sort things out. Also, Dick’s Sporting Goods who put £20m into JJB, are looking at further investment. Either way, all the investors are utterly unimpressed with the slow progress. Avoiding administration twice in quick succession? Not good enough.
One investor said it was “premature” to talk about a debt buy-out. However, he said: “This demonstrates that the patience and tolerance of loyal shareholders has been exhausted. It’s a case of shareholders saying enough is enough.”
Whatever happens, JJB need a strategy and fast because, without one, it could be sent to an early grave.