Jump to content
House Price Crash Forum
interestrateripoff

Jjb Sports Warns It Could Run Out Of Money By March

Recommended Posts

http://www.guardian.co.uk/business/2011/feb/02/jjb-sports-fundraising-jd-sports-talks

JJB Sports, the struggling sports retailer, admitted today that unless investors stumped up more cash it could run out of money within two months, putting more than 6,000 jobs at risk.

The Wigan-based chain has been flirting with disaster since 2008 and it said shop closures were being considered as part of an emergency restructuring of the 247-store chain being carried out to satisfy its bankers, after poor sales caused it to breach the terms of its loan agreement.

It is the second major high street name to run into trouble since 2011 began. HMV, the entertainment chain, is also closing stores to curb losses.

The dire state of JJB's finances were spelled out alongside details of the company's second fundraising in 18 months. The retailer, which is in takeover talks with rival JD Sports, plans to raise £31.5m (£30m after costs) by issuing 630m new shares at 5p each. The move is being supported by its two biggest shareholders, Harris Associates and Crystal Amber – the activist investor headed by Richard Bernstein – as well as the Bill & Melinda Gates Foundation, which has a 5.5% stake.

Another retail chain about to bite the dust? If you ran JD Sports would it make more sense to let your competitor go bust and take the market share rather than buying a failing group?

Share this post


Link to post
Share on other sites

Another retail chain about to bite the dust? If you ran JD Sports would it make more sense to let your competitor go bust and take the market share rather than buying a failing group?

Yes I always thought that is what I would do in the same position but I suppose if you get in before they shut up completely you can cherry pick the stores, stock and staff etc.

Share this post


Link to post
Share on other sites

Has anyone heard champagne corks popping in board rooms all over the FTSE? Any firm that had JJB Sports in it's TSR

For example the Next annual report

Awards under the plan were initially granted annually. However, from September 2008 the Remuneration Committee adopted a

biannual, rather than annual, grant policy. The Chief Executive, other executive directors and senior management receive grants of

100%, 75% and 60% of basic annual salary respectively every six months (in or around March and September each year), i.e. they

are able to receive awards of up to 200%, 150% and 120% of basic salary annually. As noted above, annual LTIP awards for Mr

Angelides will be increased from 150% of salary to 250% p.a. for each of the four performance periods ending July 2012 through

to January 2014. No equivalent increase for other executive directors is currently envisaged.

Under the plan, performance is measured over periods of three years, which commence in February and August each year, by

comparing TSR against approximately 20 other UK listed retail companies. If no entitlement has been earned at the end of a three

year performance period then the award for that period will lapse and there is no retesting. For awards made from September

2008 onwards, before allowing any of the awards to vest, the Remuneration Committee must have regard to the performance

of the Company in light of underlying economic and other circumstances, including EPS performance of the Company and of

other UK retailers over the period. Whilst not disclosed in advance, the factors taken into account in determining the awards will

be disclosed in the relevant year’s Remuneration Report. Awards made prior to September 2008 cannot vest unless EPS of the

Company has increased by at least the increase in the Retail Price Index over the period.

The comparator group of companies for the three year performance period to January 2010 was as follows:

Alliance Boots Findel Kesa N Brown

Burberry French Connection Kingfisher Signet

Carpetright Home Retail Group Marks & Spencer Tesco

Carphone Warehouse JJB Sports Morrisons W H Smith

Debenhams J Sainsbury Mothercare Woolworths

DSG

For periods ending January 2011 onwards Alliance Boots has been removed from the comparator group. For periods ending

January 2012 onwards ASOS, HMV and Halfords have been added to the comparator group and Woolworths has been removed.

Share this post


Link to post
Share on other sites

http://www.guardian.co.uk/business/2011/feb/02/jjb-sports-fundraising-jd-sports-talks

Another retail chain about to bite the dust? If you ran JD Sports would it make more sense to let your competitor go bust and take the market share rather than buying a failing group?

Do you think JD sport will do what chinese do to the car industry, where they say they going to buy it and stop other buying it cheap and let it bust at the ast minutes, then it from the admin?

Share this post


Link to post
Share on other sites

Well, if the Christmas season wasn't enough to fill their coffers and they're bleating so soon into the year then it's time to shut the doors.

Share this post


Link to post
Share on other sites

Theres no reason for JD Sports to purchase JJB as the company does not do anything unique that JD Sports couldnt do after buying selected assets from the administrators. Its not as though JJB has any contracts, goodwill, intellectual property or highly skilled employees that they wouldnt want to risk losing in an insolvency process.

They are probably just being nosey, and having a look at the books before they step back, wait for it to go pop and then purchase the assets they want from the administrators.

Edited by debt monkey

Share this post


Link to post
Share on other sites

Theres no reason for JD Sports to purchase JJB as the company does not do anything unique that JD Sports couldnt do after buying selected assets from the administrators. Its not as though JJB has any contracts, goodwill, intellectual property or highly skilled employees that they wouldnt want to risk losing in an insolvency process.

They are probably just being nosey, and having a look at the books before they step back, wait for it to go pop and then purchase the assets they want from the administrators.

Dave Whelan, the founder of JJB, sold his stake for a whopping £190m in those heady days of 2006 - bet he's relieved.

Seriously though, JJB is bust and lurching from crisis to crisis with all these capital fundraisings. Best thing to do, let it go under now.

Share this post


Link to post
Share on other sites

JJB Sports, the struggling sports retailer, admitted today that unless investors stumped up more cash it could run out of money within two months, putting more than 6,000 jobs at risk.

...as part of an emergency restructuring of the 247-store chain being carried out to satisfy its bankers, after poor sales caused it to breach the terms of its loan agreement.

:lol::lol:

Ask the banks to stump up, they've got plenty of money even if they are insolvent.

£31.5m compared to the £billions of bankers bonus money is so peanuts.

Edited by billybong

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.