RETAIL chain JJB Sports said today it will shut 72 stores by the end of the month – with the loss of 800 jobs – as it looks to recover from a sharp drop in profits.

JJB, which has more than 400 outlets, began implementing the closure plan earlier this year after a review of the business by new management.

It said the stores in question were unlikely to make any “significant contribution” to group profits and that many were already close to newer and larger JJB stores.

The announcement came as JJB said adjusted profits fell by 28% to £33.8m in the year to January 27. A £25m hit relating to the cost of closing the stores meant bottom-line profits fell by 72% to £10.8m.

JJB’s closure move is the latest blow to the UK high street after discount clothing chain Ethel Austin went into administration yesterday.

The Merseyside-based company, which has 300 stores and employs about 2,800 people, is continuing to trade while Menzies Corporate Restructuring looks for parties interested in buying the business.

JJB joined other retailers today in warning that it did not expect any respite from the difficult economic conditions in the short term.

It said total revenues for JJB stores and fitness clubs for the seven weeks to March 16 were 3.5% lower than the same period last year, while margins also came under pressure as a result of competitive trading conditions.