JJB Sports in Southend will close making 12 staff redundant

Photo credit: Dave Thompson/PA Wire Photo credit: Dave Thompson/PA Wire

2,200 staff at JJB Sports were made redundant today after administrator KPMG closed 133 stores and sold the remaining 20 to rival Sports Direct International.

Southend's store is one of the casualties with 12 staff set to lose their jobs.

Administrators KPMG were today appointed to the three companies which make up JJB Sports. 

Following their appointment, the administrators completed an agreement to sell part of the business to Sports Direct International.

Sports Direct has acquired 20 of JJB’s stores, the brand and website, securing around 550 jobs in the UK (including the staff at the company’s warehouse). 

Unfortunately the remaining 133 stores will be closed today, resulting in approximately 2,200 redundancies.

A total of 167 employees have been retained to assist the administrators.

Richard Fleming, UK Head of Restructuring at KPMG, commented: “Successive attempts to restructure the business, both financially and operationally, have not been enough to prevent the company falling into administration. 

"Unfortunately a buyer could only be found for 20 stores on a going concern basis.  All staff made redundant as a result of store closures have had their arrears of wages and holiday entitlements paid in full. Our team of employment specialists will be supporting staff on completing redundancy forms and putting them in touch with job seeker services. 

"We will now be reviewing what options are available for the remainder of the business, such as selling leasehold interests.”

David McCorquodale, corporate finance partner who led the sales process, added: “In spite of the severity of financial distress suffered by the business, we spoke with over 100 parties in the first few days of our appointment; with 8 trade and private equity players tabling first round bids. 

"Unfortunately the level of cash and further operational restructuring required to rescue a more substantial part of the business was too much risk for most interested parties.  We hope to be able to sell the leasehold interests of some of the remaining stores, which may result in re-employment of some staff.”

The administrators have set up a 24 hour helpline for employees: 0845 3022538.

Information is also available on the website: www.kpmg.com/uk/jjb

- Do you work for JJB? Contact the Echo newsroom on 01702 321139.

Comments(22)

APR says...
4:46pm Mon 1 Oct 12

Not the sort of emporium I frequent on a regular basis. When I have looked in on the odd occasion, I have found their prices rather on the high side.

thesouthendone says...
4:52pm Mon 1 Oct 12

APR wrote:
Not the sort of emporium I frequent on a regular basis. When I have looked in on the odd occasion, I have found their prices rather on the high side.
What u on about emporium, its a shop

thesouthendone says...
4:53pm Mon 1 Oct 12

Was a shop hopefully they'll make anover night club!!!

LoopyLou88 says...
5:00pm Mon 1 Oct 12

and the other day the echo reported that Southend was beginning to come out of recession .... Really ?

PJR-121 says...
5:41pm Mon 1 Oct 12

thesouthendone wrote:
APR wrote: Not the sort of emporium I frequent on a regular basis. When I have looked in on the odd occasion, I have found their prices rather on the high side.
What u on about emporium, its a shop
That's brilliant!

Please tell me this is a 'tongue-in-cheek' reply... please?

APR says...
5:51pm Mon 1 Oct 12

What happened to PC World at the airport ?

APR says...
5:53pm Mon 1 Oct 12

PJR-121 wrote:
thesouthendone wrote:
APR wrote: Not the sort of emporium I frequent on a regular basis. When I have looked in on the odd occasion, I have found their prices rather on the high side.
What u on about emporium, its a shop
That's brilliant!

Please tell me this is a 'tongue-in-cheek' reply... please?
One would hope so.

Max Impact says...
5:54pm Mon 1 Oct 12

LoopyLou88 wrote:
and the other day the echo reported that Southend was beginning to come out of recession .... Really ?
The whole company went belly up not just the Southend store, a few have been sold on but the majority are closing down.

Cockle says...
6:08pm Mon 1 Oct 12

APR wrote:
What happened to PC World at the airport ?
Closed and amalgamated into the Curry' near Nazareth House in Southend, so I'm told.

The JJB shop in Southend High Street was already closed when I went by about 11:30 this morning.
First time I've been to the High Street for ages, if that's a High Street coming out of recession then I'm a Dutchman. Street full of coffee shops and fast food outlets in the main, for a street that used to have many shoe shops I even noticed that Stead and Simpson are closing down. Couldn't make out why H&M need another store in the High Street, the one by the Royals didn't have a single customer to be seen!

The only green shoots of recovery I saw were some weeds in the cracks between some paving slabs; probably tumbleweed growing......

GlenEckett says...
6:18pm Mon 1 Oct 12

Unfortunately for JJB they've not competed with Sports Direct or the internet in regards to price for a long while.

Max Impact says...
6:48pm Mon 1 Oct 12

The problem with JJB was unless you actually knew it was there then you would have missed it, a couple of flags and a small entrance that was it, the floor space was good but not the prominence.

The chances of it becoming a nightclub probably slim because of the acess/exit and Southend does not really need another club, there are a few struggling as it is adding another would be the tipping poinbt for those that are strugling tio keep their heads above the water already.

APR says...
6:52pm Mon 1 Oct 12

Take away the banks, building societies, coffee and mobile phone shops from the high street, and there wouldn't be an awful lot left.

Apart from over priced trainers, what did JJB sell ?

sosad 1 says...
7:02pm Mon 1 Oct 12

went in currys friday tobuy something for my pc paid 30 sovs, in asdas it was 6 sovs gotmy money back shop around jjb toobloody dear nite nite

v.randy says...
7:34pm Mon 1 Oct 12

JJB been hanging on for years..nasty escalator as already said no street presence.
Echo's claim of a revival is a bit premature bearing in mind we are only 20% into the austerity cuts that will roll out over the next 3 years.
Next shop to go will be Millets..another shop with a dreadful layout and little stock.
Too many shops selling trainers anyway...first stop for me is ebay like so many...chav free shopping.

Bester says...
7:51pm Mon 1 Oct 12

thesouthendone wrote:
APR wrote:
Not the sort of emporium I frequent on a regular basis. When I have looked in on the odd occasion, I have found their prices rather on the high side.
What u on about emporium, its a shop
Means the same fing, innit.

LoopyLou88 says...
9:48pm Mon 1 Oct 12

Max Impact wrote:
LoopyLou88 wrote:
and the other day the echo reported that Southend was beginning to come out of recession .... Really ?
The whole company went belly up not just the Southend store, a few have been sold on but the majority are closing down.
I know but southend store will be going, and then another vacant shop, which they'll turn into another pound shop or 99p shop.

Max Impact says...
11:05pm Mon 1 Oct 12

sosad 1 wrote:
went in currys friday tobuy something for my pc paid 30 sovs, in asdas it was 6 sovs gotmy money back shop around jjb toobloody dear nite nite
Not being "street" WTF is sov's

APR says...
11:36pm Mon 1 Oct 12

sosad 1 wrote:
went in currys friday tobuy something for my pc paid 30 sovs, in asdas it was 6 sovs gotmy money back shop around jjb toobloody dear nite nite
You should try Argon computers , near the Anne Boleyn.
They are helpful, and know what they are talking about.

v.randy says...
9:22am Tue 2 Oct 12

thesouthendone wrote:
APR wrote:
Not the sort of emporium I frequent on a regular basis. When I have looked in on the odd occasion, I have found their prices rather on the high side.
What u on about emporium, its a shop
Don't knock someone that uses the word emporium..I like it.
And it's nice to think that someone who uses Southend High St has had an education.
Perhaps there are other words the contributor could enlighten us with .

aduksquack says...
1:44pm Tue 2 Oct 12

Nice to see so much concern for the people losing their jobs.

volunteer driver says...
3:43pm Tue 2 Oct 12

How much money did they spend on wigan athletic and the JJB stadium

The Cowboy says...
4:08pm Tue 2 Oct 12

The most annoying thing about all this is that once upon a time, JJB was the place for proper sportspeople to be able to pick up proper sportswear, equipment and footwear. Where can you buy proper durable football trainers these days? Once JJB went down the Sports Direct route of selling tat to slobs it was doomed.

The board of directors should hang their heads in shame, complete lack of strategic vision.

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