McTighe: JJB turnaround could take five years
JJB's new chairman Mike McTighe has signalled that the latest attempt at restructuring the business could take up to five years.
In an interview with the Mail on Sunday Mr McTighe said that if the Company Voluntary Arrangement (CVA) the retailer is seeking is voted through, there also needs to be a change in culture at the business.
'I've looked at the people, systems, processes in this business and I've come to the conclusion that the weakness is the people." "It's not that they are necessarily bad people, but they haven't been incentivised or adequately trained, and how can you train someone who you have taken on to do eight hours' work a week? We need a different mix."
'The announcement we made regarding the fundraising on December 23 basically saved the company,' says McTighe. 'If it wasn't for that announcement, the company would have gone into administration. There's no doubt. 'We don't have the time for a solvent restructuring so we sat down store by store and put the stores into three groups. Some we decided have no chance and need to close.'
The proposed CVA involves JJB shutting 43 of its stores within the next 12 months, with a further 46 being placed under review - potentially closing within two years.
It is also proposing to reduce rents to 55% of current levels and moving from paying rents on a quarterly to a monthly basis. It has also pledged incentive payments to landlords if future targets are met.
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