JD Sports may shut more Blacks’ stores

The Bury-based group, which bought the business for £20m in January, has already closed 93 of the worst performing stores but a further 50 are still under threat as it looks for a long-term estate of 150 sites.

It will also ditch the Millets name as JD plans to use Blacks, which sells own-brands such as Peter Storm and Eurohike, as its single outdoor fascia.

As expected, Blacks recorded a £10m loss in the six months to July 28, helping to cut JD’s profits to £2.9m from £20.1m a year ago.

However, with the business now stabilised it hopes Blacks will break-even in the second half.

JD said it had inherited a business with a severe lack of stock in many core lines as well as an excessively large and overrented store portfolio.

While the company sees a profitable future for the business, it warned that margins in the second half will come under pressure as a result of the need to clear camping products following the wet summer.

Yesterday’s profits reduction at JD was also driven by the cost of transferring to a new centralised warehouse at Rochdale, which is now fully operational.

JD’s sports fascias of JD and Size? grew UK and Ireland like-for-like sales by 1.2 per cent in a “robust” half-year performance, although operating profits for the division were £1.3m lower at £18.9m.

n The owner of Ireland’s biggest sports retailer emerged as a contender to buy all or part of ailing JJB Sports, which is up for sale as it sits on the brink of administration.

Stafford Group, which bought Lifestyle Sports, the owner of 62 stores across Ireland, in 2005 for 60 million euros (£48m), is among about half a dozen bidders left in contention, it was reported.

Dublin-based Stafford Group is a family-owned private company with 950 staff and a turnover of 500 million euro (£40m), which operates in the energy and shipping sectors, as well as sports retail.

Mike Ashley, the founder of Sports Direct International and owner of Newcastle United FC, is reportedly the frontrunner to buy JJB, while restructuring specialists GA Europe and Hilco and US retailer Dick’s Sporting Goods have also lodged interest.