At last look JJB were down at 3.37p and in the 2nd auction of the day. Not looking good for shareholders in the sports retailer.
The US giant revealed a $32.4m (£20.68m) impairment charge in its second quarter results yesterday and said JJB Sports’ performance had “materially deteriorated from its expectations”. Last month JJB revealed that like-for-likes slumped 8.7% in the 24 weeks to July 15 and put out another cash call to its investors. Dick’s said it has no further funding obligations to JJB.
It looks like they have finally run out of options and Mr Jones was the first of the rats to desert the sinking ship. What manglement have done here with the successive placings and rights issues over the last 3 years will make a helluva interesting business case study as to how NOT to run a business.
I feel for remaining shareholders.
10 Day chart