MERSEYSIDE, England — Johnson Service Group, the parent company of the large Johnson Cleaners and Jeeves of Belgravia chains, blamed its 2007 losses on Britain’s ban on smoking in public places.
The company reported pretax losses of £13.8m for the first half of the year ending June 30, 2007. Since June, share of the publicly traded company have lost 86% of their value to less than 30p per share. The company also pointed to a decline in consumer spending on better garments.
The company negotiatied a waiver with creditors in December after warning of financial dire straits. The company is expected to come up with a restructuring plan by April 30; management is establishing cost controls and launching new promotions to shore up business.
“Our immediate priority is to secure financial stability for the group in order that the operating companies can maximize their full potential,” says company chairman Simon Sherrard. “In [new CEO] John Talbot, we have someone with the experience and knowledge to lead us through the challenges of the next few months.”
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