JJB Sports yesterday appointed Sir David Jones, knighted in the New Year Honours and famed for turning around Next, as its executive chairman, in a reshuffle of senior directors.

The cash-strapped sportswear retailer is negotiating with its banks and secured a stay of execution last month. Sir David replaces Roger Lane-Smith, who drops from chairman to deputy chairman. Chris Ronnie will remain as chief executive, but will focus on the day-to-day running of the business, and Peter Williams, the former Selfridges and Alpha Group chief executive, joins as an executive director.

Sir David agreed to accept the role after several weeks of persuasion by the JJB board, but he has not yet agreed a pay package. One source said it would be highly incentive-based.

Sir David said: “We are facing the most difficult retail environment I have ever experienced, but I am looking forward to working with both Chris and Peter and the rest of the team to re-establish JJB as a major force in the sportswear market.”

Sir David saved Next from the brink of collapse in the late 1980s and went on to build the high street fashion group in its current form. Its shares had reached 6p when Sir David took over from the founder, George Davis, the fashion entrepreneur who recently departed Marks & Spencer.

Sir David, 65, who has spoken of his struggle with Parkinson's disease, will focus on strategic issues. His first job is to dispose of the 50-site gym business, which was offered to Dave Whelan, the JJB founder, some weeks ago. He rejected a deal.

JJB last month came to a new agreement with its banks, HBOS, Barclays and Kaupthing. It paid £20 million to the trio, pro-rata, rather than repaying a £20 million bridging loan that was due to Kaupthing.

Mr Ronnie said: “I have the highest regard for Sir David and look forward to working with Sir David, Peter and the rest of the team.”

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