JJB Sports compounded a poor week for the retailer as it announced a 6.8 per cent fall in sales over Christmas and said that it expected to make a loss of between £5 million and £10 million this year, sending its share price down 16 per cent.

Today's poor figures are another blow for the sportswear group after it emerged yesterday that Chris Ronnie, the chief executive of JJB, acknowledged that he no longer owned his 27.5 per cent stake in the business.

Instead, his shareholding is owned by the liquidators of Kaupthing, the collapsed Icelandic bank.

The Times also revealed that Sir David Jones, the new executive chairman of JJB, who is famed for turning around Next, the high street retailer, launched an investigation into the company.

JJB said this morning that like-for-like sales, which strip out gains from new stores opened in the five weeks to January 11, fell by 6.8 per cent compared with the same period a year earlier.

Shares in the company fell 16.36 per cent, or 2.25p, to 11.5p.

The company's retail trade appeared to be one of the biggest drags on revenue, with sales falling 8 per cent.

In contrast, JJB's health club business reported an 8.4 per cent increase in revenue.

JJB said that it was considering its options over the loss-making LifeStyle division — the Original Shoe Company and Qube, which sell fashion trainers.

The division is expected to make a £15 million loss over the coming financial year.

As a consequence of the LifeStyle unit, as well as what JJB described as "extremely difficult trading conditions experienced in this financial year", the company said that it would make a loss of between £5 million and £10 million.

JJB also confirmed that it was selling its Fitness clubs, stating that information would be sent to interested parties in the next few days.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax