Sir David Jones today set out his vision to transform JJB Sports, the beleaguered sportswear chain he saved from bankruptcy last month.

JJB, which sacked Chris Ronnie, its chief executive, in March, plunged to a £17.5 million loss for the year to January 25, as over-stocking, punitive interest payments and losses at the recently-closed footwear division took their toll. Like-for-like sales plunged by 23 per cent after the end of the year in the 16 weeks to May 17, partly because of low stock levels. Shares in the company fell by 7.14 per cent to 26p.

Sir David, who rescued Next from the brink of collapse in the early 1990s, laid out proposals to boost JJB's internet presence and announced plans to reformat stores to focus on football and sports equipment. He has appointed Colin Tranter, a long-standing ally who has come out of retirement, as head of retail to make the buying operation more efficient and reformat the stores.

The Wigan retailer secured a crucial Company Voluntary Agreement with landlords last month, despite attempts by Mike Ashley, who controls Sports Direct, to scupper the deal.

In a criticism of the former management, Sir David said that JJB, under former chief executive, Mr Ronnie, had lost focus on its core customer by trying to take-on Mr Ashley's downmarket Sports Direct and the relatively upmarket JD Sports Fashion at the same time.

Mr Ronnie was sacked for gross misconduct after he admitted that he did not know what happened to his 27 per cent stake in the business in the wake of the Icelandic banking collapse.

Sir David said this morning: "Things can only get better." He added: “Since I became executive chairman in January 2009, we have made significant inroads to restoring the group's financial stability - against all the odds - and we have initiated a strategic path to growth.

“With our restructuring progressing very well, we now have the opportunity to revitalise JJB Sports as a focused multi-channel retail business, specialising in sporting goods and sportswear. I am confident that the executive management team we now have in place has the skills and conviction to deliver on that exciting potential, despite the challenging market conditions we expect in the months ahead.

“There is still much to be done but we are determined to succeed and to serve the best interests of our customers, employees and shareholders."

He secured the immediate future of the company by selling its gym business to Dave Whelan, the founder of the company, closing the loss-making footwear businesses and striking the CVA which eliminated rent on 140 closed stores. It was the first time a listed company had achieved a CVA.

Sir David, who suffers from Parkinson's disease, said this morning: "I'm totally and utterly committed to this business. I intend to work full-time for as long as necessary to get it back on track." He added that he expected to the turnaround to take up to 18 months. “I should like to think that this time next year I will be thinking about playing with my grandchildren on the beach.”

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