JAG has rolled out 50 licences for its franchise programme and hasn’t ruled out the possibility of its entire retail estate working under this procedure.
The retailer had planned to have 40 franchise locations running by the end of last month but has exceeded that target, leaving just 25 shops open under the original JAG brand.
JAG managing director John George (pictured) said: “The uptake has been exceptional. The whole programme is working well and our best performing stores are franchise locations.
“The idea of turning our entire retail portfolio into franchise locations is not totally out of the question but at the moment we’re just getting ideas on how to do this properly with the stores that have switched across.”
George added that that HM Revenue and Customs (HMRC) has said it will negotiate on the upfront payment due as a deposit in order to continue making VAT payments of £150,000.
Originally HMRC had asked for four months payment upfront – £600,000.
“It’s a relief that HMRC is willing to negotiate on the payment,” he said.
“What it was asking us to stump up was complete madness.”
He also said that he’s still heard little from O2 regarding £350,000 it owes the retailer in connection costs. JAG has not received any payment from the network, despite continuing to trade with JAG after it went through a ‘prepack’ administration at the end of January.