Ronnie draws Jones into JJB conflict
FORMER JJB chief executive Chris Ronnie yesterday hit back at his former employer in a desperate bid to clear his own name and muddy the reputation of executive chairman Sir David Jones.
In an email circulated to the press Ronnie said that he and Jones had been working on taking the retailer private last year.
This latest twist in the sportswear retailer’s pantomime saga is a bid by Ronnie to show he and Jones were far closer than the retailer likes to suggest. In an email replying to Ronnie last year about his concerns Jones wrote: “I am very sorry to hear that you believe that ‘I am undermining you’, I consider my support has been considerable since I came on the board.”
It is believed that Ronnie and Jones had discussed taking JJB Sports private in spring 2008 with the backing of Icelandic bank Kaupthing. At the time of the email Jones was still a non-executive director at the retailer. A source close to the situation yesterday said it was nothing more than “a pipe dream”.
Before the plot had the chance to succeed the Icelandic banking crisis hit. It sent Ronnie’s fortunes into a steep nose-dive after his 27.5 per cent stake was seized.
Jones was parachuted in as executive chairman in January, and Ronnie was eventually fired for “gross misconduct” without receiving a pay-off.
CHRIS RONNIE- FORMER JJB CHIEF EXECUTIVE
8 JULY 2009
JJB was a tremendous opportunity for me. Why would I want to destroy something I have invested millions in?
I did not make these decisions on my own – they were given full board approval and directors were updated constantly. I brought David in to be my mentor on the corporate side; he was very involved in the day-to-day running of the business and had a full understanding of where it was going.
SIR DAVID JONES – EXECUTIVE CHAIRMAN OF JJB SPORTS
8 MARCH 2008
I have taken you on trust that we will take this business private, that I will have a share of the action and we will all live happily ever after.
15 JUNE 2009
A series of bad business decisions taken by former members of the executive management team and the worsening economic environment brought the Company dangerously close to insolvency.