Unpaid rents bring bailiffs to JJB stores

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by Lin Freestone

It has been reported that bailiffs have visited at least twelve stores operated by JJB Sports after landlords reported unpaid rents.

It is estimated that the company owes at least £500,000 on empty stores for which it still has liability for the lease.

Landlords are rumoured to be seeking a statutory demand for outstanding payments, following concerns about JJB’s ability to pay its bills after it issued post-dated rent cheques. A statutory demand gives the retailer two weeks to pay before a creditor can initiate bankruptcy proceedings.

In response, a spokesperson for the sports retailer reported that rents have been paid in full and in a timely manner within all its operational stores, and the company is in negotiations with a handful of stores where it has ceased trading.

Last month, JJB Sports reported a half-year loss of £8.4m, against a profit of £8.7m in the same period a year ago. It scrapped the interim dividend, and offered a gloomy outlook for the future.