'Bad publicity' hits JJB's sales

JJB is continuing efforts to avoid going into administration

Troubled retailer JJB Sports has seen its sales slump by almost a quarter, blaming in part the "negative publicity surrounding the company".

JJB, which is continuing efforts to avoid going into administration, claimed the coverage of its predicament was putting off would-be shoppers.

It said suppliers were also reluctant to supply stock because of the reports surrounding its financial troubles.

JJB added that it was further being hit by the weak trading environment.

The firm said like-for-like sales in the 16 weeks to 17 May were 23% lower than the same time last year.

JJB has also released its full-year results for the 12 months to 25 January on Thursday, reporting that its made a pre-tax loss of £189m, compared with a profit of £11m the year before.

Lower debts

The retailer is continuing efforts to restructure is finances through a company voluntary agreement (CVA) with its landlords and creditors.

The CVA was agreed last month and is now due to be implemented on 28 May, baring any legal challenge. It will mean the firm has to pay less debts on its 140 closed stores.

JJB has already been granted a temporary extension on its loan payments, and has sold off its gym business to raise funds.

Its main creditors include Barclays, HBOS and Kaupthing banks.