Executive chairman Peter Cowgill refuses to rule out claiming damages under the Riots (Damages) Act after looters made off with £700,000 of stock
JD Sports may pursue a multimillion-pound compensation claim against the police authorities to recover the cost of the August riots, after reporting that looters made off with £700,000 of its stock.
The sportswear and fashion chain told the City on Wednesday that six London stores suffered "very significant thefts", and that its Woolwich branch in London is still being repaired. The company is now working with its insurers on a claim for damages, covering theft of stock, repair costs and business interruption.
JD was one of the retailers singled out for attention during the disruption that swept several UK cities last month. Its total bill probably runs into millions, once repairs and lost profits are included.
Executive chairman Peter Cowgill refused to rule out claiming damages under the Riots (Damages) Act, which states that where damage is caused by people "riotously and tumultuously assembled", local police authorities are required to compensate victims. The Guardian calculated last month that the total bill to taxpayers could be £100m.
Supermarket chain Sainsbury's has decided to waive its own £1m claim, but Cowgill indicated that JD may take a different line.
"It depends if you've only had the equivalent of a can of beans stolen. We were slightly more heavily attacked than that," he told the Guardian.
He added that JD and its insurance brokers had not yet decided how to proceed on the insurance claim, but assured shareholders that the riots would not materially affect its results this year. Wednesday is the deadline for registering any claim with the relevant authorities.
City analysts had been eager to see whether JD's results were badly affected by the riots. As Nick Bubb of Arden Partners put it: "Many of their shops were targeted by the hoodied looters and many of the looters were their hoodied customers."
Shares in JD Sports Fashion closed down 10p at 830.5p even though the company reported it was on track to hit City forecasts, despite the economic climate. Pre-tax profits, including certain exceptional items, rose by 20% in the 26 weeks to 30 July to just over £20m. "Our continual focus on exploiting all avenues of revenue growth and margin protection has enabled us to deliver a level of profit that represents a platform for meeting expectations for the full year, although trading conditions remain tough," Cowgill said.
JD's margins fell, which Cowgill partly attributed to the company's policy of absorbing the VAT increase and higher cotton costs where possible.
Freddie George, retail analyst at Seymour Pierce, was encouraged that JD reported better sales in September after a "difficult August".
"We are, however, becoming more concerned about the impact the economic downturn is having on the company's core customers," he added.
The sportswear and fashion chain told the City on Wednesday that six London stores suffered "very significant thefts", and that its Woolwich branch in London is still being repaired. The company is now working with its insurers on a claim for damages, covering theft of stock, repair costs and business interruption.
JD was one of the retailers singled out for attention during the disruption that swept several UK cities last month. Its total bill probably runs into millions, once repairs and lost profits are included.
Executive chairman Peter Cowgill refused to rule out claiming damages under the Riots (Damages) Act, which states that where damage is caused by people "riotously and tumultuously assembled", local police authorities are required to compensate victims. The Guardian calculated last month that the total bill to taxpayers could be £100m.
Supermarket chain Sainsbury's has decided to waive its own £1m claim, but Cowgill indicated that JD may take a different line.
"It depends if you've only had the equivalent of a can of beans stolen. We were slightly more heavily attacked than that," he told the Guardian.
He added that JD and its insurance brokers had not yet decided how to proceed on the insurance claim, but assured shareholders that the riots would not materially affect its results this year. Wednesday is the deadline for registering any claim with the relevant authorities.
City analysts had been eager to see whether JD's results were badly affected by the riots. As Nick Bubb of Arden Partners put it: "Many of their shops were targeted by the hoodied looters and many of the looters were their hoodied customers."
Shares in JD Sports Fashion closed down 10p at 830.5p even though the company reported it was on track to hit City forecasts, despite the economic climate. Pre-tax profits, including certain exceptional items, rose by 20% in the 26 weeks to 30 July to just over £20m. "Our continual focus on exploiting all avenues of revenue growth and margin protection has enabled us to deliver a level of profit that represents a platform for meeting expectations for the full year, although trading conditions remain tough," Cowgill said.
JD's margins fell, which Cowgill partly attributed to the company's policy of absorbing the VAT increase and higher cotton costs where possible.
Freddie George, retail analyst at Seymour Pierce, was encouraged that JD reported better sales in September after a "difficult August".
"We are, however, becoming more concerned about the impact the economic downturn is having on the company's core customers," he added.
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