Sports chain JJB to close 72 stores

JJB, which has more than 400 outlets, began implementing the closure plan earlier this year after a review of the business by new management.

It said the stores in question were unlikely to make any "significant contribution" to group profits and that many were already close to newer and larger stores in its estate.

The moves were announced as JJB said adjusted profits fell 28% to £33.8 million in the year to January 27.

A £25 million hit relating to the cost of closing the stores meant bottom-line profits fell 72% to £10.8 million.

JJB's closure move is the latest blow to the UK high street after discount clothing chain Ethel Austin went into administration on Tuesday.

The Merseyside-based company, which has 300 stores and employs around 2,800 people, is continuing to trade while Menzies Corporate Restructuring looks for parties interested in buying the business.

With tighter credit conditions causing shoppers to review spending plans, the British Retail Consortium reported a sharper-than-expected fall in March sales.

Fears that the lending crisis could lead to rising unemployment, following a prediction that 40,000 workers in the City may lose their jobs, has added to uncertainty in the retail sector.

JJB joined other retailers in warning that it did not expect any respite from the difficult economic conditions in the short term. It said total revenues for JJB stores and fitness clubs for the seven weeks to March 16 were 3.5% lower than the same period last year, while margins also came under pressure as a result of the competitive trading conditions.