JD Sports asks for rent cuts at struggling Bank stores

UK retailer JD Sports is said to be in talks with retail landlords to reduce rent on a number of its Bank stores, as the retailer looks to cut down costs for its loss-making fashion branch.

Peter Cowgill, Executive Chairman at JD Sports revealed to Reuters that the firm had spoken to landlords and is asking to switch to a turnover-based rents on roughly 25 of its 88 Banks stores.

“We will do anything we can to improve the performance of the business,” said Cowgill, who noted that a number of landlords would be able to take back rental units earlier than arranged in order to support reduce rent rates.

Although JD Sport's 580 store strong core sportswear business has boosted strong profit growth for the firm, its fashion branch, which includes high street chains such as Bank and Scott, has been unable to keep up.

The firm previously reported increasing operating losses of 8.2 million pounds for the six months to August 2, as Bank continues to pose a problem despite a recent management overhaul.

Cowgill added that in spite of JD Sport's continued efforts to improve business in under-performing stores, Bank has traded “reasonably well” through the troubling start to the autumn season, as unseasonably warm weather affected clothing sales at a number of high street retailers.