JD kicks rents into long grass

PAYMENTS DELAYED IN CONTRACT WAR

THE owner of trainer chain JD Sports has refused to pay rent on hundreds of stores for the past six months – despite making record profits of nearly £440million.

JD Sports Fashion has suspended payments while negotiating what it believes are “fair” terms with store landlords.

“If the rents were fair I’d pay them in a flash,” JD executive chairman Peter Cowgill said. “They are disadvantaging the strong to subsidise the weak.”

The firm argues other retailers have used the threat of closing their stores to get landlords to cut rents.

Cowgill warned it was also prepared to shut stores if deals cannot be struck.

The group owns more than 2200 outlets worldwide, including 400 JD and Size? shops in the UK and Ireland, plus the Millets and Blacks chains. JD put its

Go Outdoors chain into administration last month, then bought it back, safeguarding most of the offshoot’s 2400 jobs for now. But it wants better terms from landlords of its 67 stores. The tough stance comes despite JD yesterday revealing profits increased by 24 per cent to £438million in the year to February, with revenues rocketing 30 per cent to £6.2billion. Takings have been strong in stores since the coronavirus lockdown reopenings. Chain has JD is trying to overturn a 2200 Competition and Markets shops Authority ruling to sell Footasylum, the rival sports shoe and clothing retailer it bought last year. Cowgill, who said the appeals tribunal would not consider any further input from arch-competitor Sports Direct, added: “I am optmistic”.