JJB Sports denies talk of selling out to Ashley's Sports Direct

Vague talk that despite the likely regulatory problems JJB Sports and Mike Ashley's Sports Direct were planning some kind of marriage has been knocked back.

After just six week's as JJB's chief executive, Chris Ronnie held his hand up to having a meeting with Ashley, but said it was about how his new company might be able to get involved with future development of Sports Direct's Slazenger brand.

'That was as far as it went,' said Ronnie. 'We have no intention of selling out to Mike. At this time we're busy getting JJB's strategy right and not peering over our shoulders at what the competition might be up to.'

JJB's (JJB) biggest problem is its reliance on the sale of football related products in European Championship and World Cup years.

'We've got to reduce our dependency on the championship years, more of our own branded products will help, more health clubs, improved staff training and a totally different look to our stores some of which I have to admit are beginning to look tired,' he said.

The own brands will be sold through Champion and KooGa names. Champion is one of the US' biggest sportswear companies and also has a profile in Continental Europe, KooGa is closely associated with rugby.

Products will be sourced direct from the factory, locally where possible, and this should improve JJB's margins.

Five more health clubs are due to open in the second half of the year and a further 14 are planned for 2008.

Manchester has been targeted for the first store upgrade and a designer has ordered the Trafford store to be stripped back to the bricks. The new look will eventually be rolled out through the chain, but no budget has been agreed.

Both revenue and profits in the 26 weeks to 29 July were hit by tough comparatives with the 2006 World Cup. Sales fell 4.3% to £365.3 million from £381.6 million last time.