Keith Jones is diving in at the deep end at JJB Sports

Keith Jones is a brave man. As newly appointed chief executive at JJB Sports, he joins after the sports retailer has suffered a roller coaster year. Over the past 12 months JJB has been close to financial ruin, restructured, and wracked by scandals and sackings. Stepping up from group retail director at DSGi, Jones’s first job is to steady this rocky ship.

While chairman Sir David Jones has been credited with steering the business away from administration with a CVA and a £100m fundraising, a year of corporate turmoil and significant stock problems have sent sales plummeting and given competitors a chance to strengthen and grow market share. So Jones more than has his work cut out.

The chief executive role has been vacant since February, when Chris Ronnie left the business. And while several names had been thrown into the ring – including former boss Tom Knight and former Original Factory Shop boss George Foster – the board last week decided to turn to Jones to lead the business out of trouble.

Jones was likely to have impressed a key member of the JJB board – non-executive director John Clare, who previously worked with Jones at DSGi. Clare says Jones is a “good people manager and very good on stores”, adding: “He looks at a retail business through the eyes of each store. JJB is looking for an operationally led turnaround and Keith is an outstanding retail operator.”

Jones started his career on the shopfloor and worked in distribution for Currys. He then moved to B&Q and Virgin Vie, before returning to DSGi for a 10-year stint. During his time at the electricals group, he was managing director of PC World and worked on its international business, including setting up PC City in Spain.

One source close to DSGi said: “He’s a solid pair of hands – he is good with store-level people.”

The source said that despite his rapid ascent at DSGi, he didn’t always see eye to eye with chief executive John Browett, with the paid sometimes clashing in trading meetings .

A feisty nature will come in handy in the sports world, with its characters such as Sports Direct boss Mike Ashley. Sir David Jones learnt that the hard way, when his once unblemished name was dragged through the mud after he was caught up in a loans scandal.

Keith Jones will also need a thick skin to cope with the headache of the OFT inquiry into possible cartel activity. While JJB alerted the OFT, and is therefore immune in terms of prosecution, it will be another drag on the troubled business.

Jones may not have a proven track record as a chief executive, but his time at DSGi means he will be familiar to some analysts. And some believe that this is not essential to the role, with the likes of Clare and Sir David Jones, public company veterans, leading the board.

He does not have fashion experience either, but as Clare points out, it is all about the brands in sports retailing, which is similar in many ways to
electricals retailing.

Clare also believes Jones’s online experience will serve JJB well as it seeks growth in this area. He was one of the key people involved in creating the click and collect offer at DSGi, and was part of the team that decided to buy Pixmania in France and take Dixons exclusively online.

Jones’s challenge will be to make an impact as an outsider in the incestuous and highly competitive sports retailing arena. Those close to him say that he has the drive and competitive edge to give him a fighting chance.