Guest Posted February 12, 2011 Share Posted February 12, 2011 JJB lurched into further problems yesterday as it admitted that it may be forced to close two-fifths of it's stores nationally. The company, which has a multi-million pound agreement with Rangers as a merchandising partner, has been forced to consider axing as many as 16 of it's Scottish stores in a bid to stay afloat.The retailier may have to close stores and cut jobs under a company voluntary arrangement (CVA) in what may be one final roll of the dice in order to keep trading. A CVA allows a company with debt problems such as JJB to reach a voluntary agreement with its business creditors regarding repayment of all, or part of its corporate debts over an agreed period of time.View the full article Link to post Share on other sites More sharing options...
jimgers 565 Posted February 12, 2011 Share Posted February 12, 2011 If they do close as many branches as they are predicting, i think they would find it very hard to keep paying the agreed £1.7mil a year to Rangers? which could then negate the original agreement. Link to post Share on other sites More sharing options...
gunslinger 270 Posted February 12, 2011 Share Posted February 12, 2011 3 million a year Link to post Share on other sites More sharing options...
kerzzo 4 Posted February 12, 2011 Share Posted February 12, 2011 The club declined to discuss the matter yesterday when the Herald contacted them for comment, although it has previously said that it could regain ownership of the licensing and distribution rights if JJB goes out of businessTopic heading a bit misleading as its Rangers who declined to comment. I would welcome this being scrapped and getting our own stores opened again as JJB are terrible in terms of selling our brand. Link to post Share on other sites More sharing options...
roboscot 1,203 Posted February 12, 2011 Share Posted February 12, 2011 What fucks me about this deal is why there was never any international licensing agreements in place between Rangers and major sports retailers in the English speaking countries with large expat communities like Oz, US, Canada, Sth Africa etc. By all accounts JJB have been next to useless in servicing the domestic market.Were JJB given the world wide rights? Link to post Share on other sites More sharing options...
stuart54 218 Posted February 12, 2011 Share Posted February 12, 2011 Do you think Craig Whyte would like the merchandising too if he was to gain control of Our Club.Handled the correct way, it could bring in millions. Link to post Share on other sites More sharing options...
tommy2212 151 Posted February 12, 2011 Share Posted February 12, 2011 IMO this is a good thing we can get out of this noose round our neck scot free if they break their contract agreement. Cannae be left long on the deal anyway seems donkeys years ago when we went into bed with this incompetent shambles! Link to post Share on other sites More sharing options...
kerzzo 4 Posted February 12, 2011 Share Posted February 12, 2011 IMO this is a good thing we can get out of this noose round our neck scot free if they break their contract agreement. Cannae be left long on the deal anyway seems donkeys years ago when we went into bed with this incompetent shambles!Another 5yrs of the deal still to go, but it would be great if we were able to get out of it and open our own stores again.At the time the deal looked good due to the payment the club received, but now it seems like one of the worst things our club done as there is no marketing really happening (the main JJB being in Argyle Street selling the clothing etc).Check out JJB stores throughout the rest of the UK & they will either be selling none or selling same amount of strips as every other clubs top on sale Link to post Share on other sites More sharing options...
Jimfanciesthedude 25,551 Posted February 12, 2011 Share Posted February 12, 2011 here we go againwhere do we get the money to open all these stores and hire all these workers, jesus christ folks the economy has went backwards again, a guaranteed 3million a year is probably a lot better than our own shops struggling to make the rent every monthalso when deciding our yearly budgets, the bank wont take ANY figures from your own run shops into consideration, as any profits guessed by the accountants are exactly that, a guesswhereas the 3mill a year (yes its shite) is guaranteed, no matter if JJB sell not a single rangers stripright now guaranteed income is a must for the club, not having our own shops etc and praying that we rake in a fortune Link to post Share on other sites More sharing options...
Jimfanciesthedude 25,551 Posted February 12, 2011 Share Posted February 12, 2011 Another 5yrs of the deal still to go, but it would be great if we were able to get out of it and open our own stores again.At the time the deal looked good due to the payment the club received, but now it seems like one of the worst things our club done as there is no marketing really happening (the main JJB being in Argyle Street selling the clothing etc).Check out JJB stores throughout the rest of the UK & they will either be selling none or selling same amount of strips as every other clubs top on sale18million up front3million a year for 10 yearsa 48million quid deal for doing nothing, literally the club has to do absolute heehaw, we dont hire staff, we dont pay overheadsan average of 4.8million a year for doing absolute nowtnothing wrong with the deal Link to post Share on other sites More sharing options...
SirWalterSmithLegend 206 Posted February 12, 2011 Share Posted February 12, 2011 Great news, ive been wanting rid of this deal since we signed it. JJB is a poor brand with poor stock and a worse reputation. We are better than that. We deserve better.Its about time we started acting like a big club again, lets get our club shops back! Jim, we know what each other thinks, theres no point doing it all again. Link to post Share on other sites More sharing options...
californiadreamin52 339 Posted February 12, 2011 Share Posted February 12, 2011 Are JD Sports still in talks about a takeover? Link to post Share on other sites More sharing options...
kerzzo 4 Posted February 12, 2011 Share Posted February 12, 2011 18million up front3million a year for 10 yearsa 48million quid deal for doing nothing, literally the club has to do absolute heehaw, we dont hire staff, we dont pay overheadsan average of 4.8million a year for doing absolute nowtnothing wrong with the deal In a way you are right as financially it was a good deal.But is has done absolutely nothing for the brand of The RangersI am not saying get out this deal and go open 100 stores etc, what I am saying is getting out of this deal with JJB will allow our brand to be sold more in USA/Canada etc, JJB holding our badge rights is taking us backwards. Link to post Share on other sites More sharing options...
Guardian 4,281 Posted February 12, 2011 Share Posted February 12, 2011 JJB's sales plummetted when being a chav went out of fashion.They are like a headless chicken when it comes to organisation and we'd be better off without them. I'm sure JD will jump in to cherry pick the best bits once JJB sinks further.I just hope there is no way they can pick up our deal as well. Link to post Share on other sites More sharing options...
ken 3 Posted February 12, 2011 Share Posted February 12, 2011 The JJB deal whilst initially looking good for our club has been a major balls up for Murray and our club. I live in Tamworth near Birmingham and our local JJB mega store is just a waste of time for purchasing official merchandise. They only sell the home strip which is exactly the same as every other club in Europe and even conference teams! Its a joke!I thought the idea was that we would be selling our official merchandise to a much broader potential supporter hence our reputation and support base would increase. The figures quoted as between 1.7m and 3m per year are minuscule compared to what we would receive if we were running our own merchandise outlets. I sincerely hope that we are somehow able to leave this deal at some point, although i feel at this moment it would cause more problems than necessary. We have no infrastructure in place anymore as Murray sold all the shops and spend millions paying off staff. So where do we go from here? Im going to contradict myself now as i believe the only solution if we lose the contract with JJB is to look towards a similar sportswear company to sell our merchandise as like i said we have no infrastructure anymore. Until such time as we have sufficient resources to start again with our shops etc etc Link to post Share on other sites More sharing options...
SirWalterSmithLegend 206 Posted February 12, 2011 Share Posted February 12, 2011 In a way you are right as financially it was a good deal.But is has done absolutely nothing for the brand of The RangersI am not saying get out this deal and go open 100 stores etc, what I am saying is getting out of this deal with JJB will allow our brand to be sold more in USA/Canada etc, JJB holding our badge rights is taking us backwards.Correct and for me would bring in more pennies than the money we currently get.Jims figures are spot on, they are common knowledge, and its a decent deal for a Scottish club, but we can do better, we are bigger than that. The whole point of the JJB deal was because SDM friend(DW) offered him almost £20m up front and that was when the vultures from the banks first demanded their money back, he needed that lump sum and the only way to get it was to sell our shops and sell our brand to a cheap sports shop. Link to post Share on other sites More sharing options...
Nicika Jelavic 7 Posted February 12, 2011 Share Posted February 12, 2011 Isn't JJB getting takenover? No? Link to post Share on other sites More sharing options...
Jimfanciesthedude 25,551 Posted February 12, 2011 Share Posted February 12, 2011 The figures quoted as between 1.7m and 3m per year are minuscule compared to what we would receive if we were running our own merchandise outlets. would love to see some actual figures to back that up Link to post Share on other sites More sharing options...
boss 1,941 Posted February 12, 2011 Share Posted February 12, 2011 As Jim said, it's £3m a year minimum. One of the newspapers wrongly stated £1.7m during the week and that's been replicated in the article.Remember:- £18m up front- £3m minimum a year for 10 years- but cost to us of £4m+(IIRC) to close the old shops- the £18m also saves us the best part of £1m a year in interestFinancially it was, without doubt, a good deal. However, from a supporters POV, JJB are woeful.Also, the proposed CVA only affects the landlords; that is clearly stated in the announcement. It does not affect the payments to Rangers so there is no reason why JJB would comment on the Rangers deal.If the CVA is not approved (and the landlords seem unconvinced yet that they should approve a second CVA in as many years), it is IMO almost certain that JJB will go into Administration, which would affect the Rangers deal. Link to post Share on other sites More sharing options...
Jimfanciesthedude 25,551 Posted February 12, 2011 Share Posted February 12, 2011 Jim, we know what each other thinks, theres no point doing it all again. aye we might as well meet at the crossroads and argue Link to post Share on other sites More sharing options...
SirWalterSmithLegend 206 Posted February 12, 2011 Share Posted February 12, 2011 aye we might as well meet at the crossroads and argue Link to post Share on other sites More sharing options...
Jimfanciesthedude 25,551 Posted February 12, 2011 Share Posted February 12, 2011 As Jim said, it's £3m a year minimum. One of the newspapers wrongly stated £1.7m during the week and that's been replicated in the article.Remember:- £18m up front- £3m minimum a year for 10 years- but cost to us of £4m+(IIRC) to close the old shops- the £18m also saves us the best part of £1m a year in interestFinancially it was, without doubt, a good deal. However, from a supporters POV, JJB are woeful.Also, the proposed CVA only affects the landlords; that is clearly stated in the announcement. It does not affect the payments to Rangers so there is no reason why JJB would comment on the Rangers deal.If the CVA is not approved (and the landlords seem unconvinced yet that they should approve a second CVA in as many years), it is IMO almost certain that JJB will go into Administration, which would affect the Rangers deal.unless we were THAT bad at it, you would surely expect rangers to include something in the deal about failure to make the payments on timealso boss, is the 3mill a year up front or is it a certain amount a month? Link to post Share on other sites More sharing options...
boss 1,941 Posted February 12, 2011 Share Posted February 12, 2011 unless we were THAT bad at it, you would surely expect rangers to include something in the deal about failure to make the payments on timealso boss, is the 3mill a year up front or is it a certain amount a month?There's never been any disclosure re timing.Any sums due to us will be dwarfed by the claims from landlords. Link to post Share on other sites More sharing options...
Briton 394 Posted February 13, 2011 Share Posted February 13, 2011 I wish Newsnow would stop running 'stories' from non news sources. This is rubbish....not news Link to post Share on other sites More sharing options...
Guardian 4,281 Posted February 13, 2011 Share Posted February 13, 2011 If the CVA is not approved and JJB go into administration as Boss suggests, does anyone know if that means all bets are off as far as the JJB-Rangers deal goes, or could somebody like JD Sports buy it up ?What I'm getting at is, would Rangers have any say in it ?I suppose it depends on the contract, but if we got the rights back, I imagine we could sell them again (if we desire) for a better price than somebody buying them up in a JJB fire sale. Link to post Share on other sites More sharing options...
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