JJB Sports attracts the analyst red pen
Troubled sports retailer JJB Sports was today on the end of a significant downgrade by the Goldman Sachs analyst team who expects sales this year to collapse 33% and for a further 30% the year after. Cumulative losses for the two years are expected to be in the region of £62.5 million with £43.5 million expected in the current year and £7.7 million in the year after.
This comes at a very difficult time for JJB Sports which is currently considering a number of ways to raise additional working capital. The sale of non-core assets and the issue of new shares have been considered at great length by the directors and we should hear something in the short term. There is also some controversy regarding a £1.5 million loan taken by Sir David Jones, the chairman of JJB Sports, from fierce competitor Mike Ashley who is the leading shareholder in Sports Direct.
Mike Ashley believes that Sir David Jones has a conflict of interests while JJB sports have denied this accusation with the fight set to go on. There is serious bad blood between David Whelan, the founder of JJB sports, and Mike Ashley who have been at loggerheads for some time.
Share this..
Related stories
Will A Conservative Government Cope Any Better Than Labour?
As the current Labour government lurches from crisis to crisis many are now starting to turn their attention to the Conservative Party and the prospect of David Cameron being voted in as PM at the next general election. Will the Tories be able to offer a lifeline to struggling UK citizens? Will they do any better than Labour?
Historically Labour has always been a high tax party and...
Is the Eurozone finally recovering?
After a period of five months which has seen prices falling across all 16 EU member states it was today revealed that Eurozone inflation now stands at 0.6% for the 12 months to November. This is a marked turnaround from the previous few months which has seen more and more pressure on prices and more and more pressure on economies and businesses. So what does the future hold for the Eurozone? Wh...
Read MorePeter Mandelson looking to protect Vauxhall jobs
Lord Mandelson is today in Germany to meet executives of Magna, the company which took over a number of General Motors European operations. He is specifically looking for a number of guarantees regarding Vauxhall and the thousands of jobs connected to the operation in the UK. However, while initial signs were good, in that the company had verbally agreed to guarantee jobs in the short term, there...
Read MoreConstruction sector activity increases in September
On the face of it, today's Markit/Chartered Institute of Purchasing and Supply report would appear to be good news with an increase in activity throughout September. However, despite the fact that the index increased from 52.1% in August to 53.8% in September it seems that construction companies are now more downbeat about the immediate future than they have been for 18 months. It would appear...
Read MoreWhat will Gordon Brown say at the World Economic Forum?
When Gordon Brown left for the World Economic Forum earlier this week he appeared upbeat and positive for the future. However, a damning attack by the International Monetary Fund earlier this week has blown apart his reputation for prudence and economic prowess. The suggestion that the UK economy is the weakest in the developed world and will be among the last to recover when the world economy imp...
Read More