JJB Sports jobs go as 70 stores closed

Struggling retail chain JJB Sports today confirmed that it will shut more than 70 stores by the end of the month - with the loss of around 800 jobs - as it looks to recover from a sharp drop in profits.

JJB, which has more than 400 stores, began implementing the closure plan earlier this year after a business review by a new management team. The group has already said stores in Wolverhampton, Walsall, the Merry Hill centre and Tamworth would be amongst those marked for closure.

The Wolverhampton store has since been re-opened by rival Sports Direct.

JJB said today that the 72 stores in question were unlikely to make any "significant contribution" to group profits and added that many were already close to newer and larger stores in its estate.

The company said 1,200 jobs would be affected overall.

But 400 of the positions will be deployed elsewhere in the business.

Seven of the sites are due to be re-badged as Original Shoe Company, a retailer acquired by JJB earlier this year.

The total number of stores being axed was confirmed as JJB said that adjusted profits fell 28 per cent to £33.8 million in the year to January 27.

And a £25 million charge relating to the cost of closing the stores meant that bottom-line profits slumped by 72 per cent to £10.8million.

The store closures are yet another blow to the UK high street, which has been hammered by the ongoing crisis in the world money markets.

JJB joined other retailers today in warning that it did not expect any respite from the difficult economic conditions in the short term.

It said total revenues for JJB stores and fitness clubs for the seven weeks to March 16 were 3.5 per cent lower than the same period last year because of competitive trading conditions.

With tighter credit conditions causing shoppers to review spending plans, the British Retail consortium yesterday reported a sharper-than-expected fall in sales last month.