The appointment of the recently-knighted former Next boss Sir David Jones as executive chairman sent JJB's shares up as much as 60% amid renewed hopes for a turnaround of the firm.

JJB is also taking on the former chief executive of Selfridges, Peter Williams, to oversee strategy in the boardroom changes announced last Friday.

Investec's Katharine Wynne upgraded her rating on the stock from "sell" to "hold" following the moves.

"We believe that with the new executive directors in place, the chances of the business staying afloat and surviving a restructuring are much improved," she said.

Sir David – promoted from his previous role as deputy chairman – said that he thought the company was "salvageable".

The firm made rental payments on most of its stores on Christmas Day and has negotiated monthly payments with a small number of landlords, Sir David added.

Although plans to sell its Original Shoe Company and Qube chains have failed, JJB is said to have had interest from a number of parties over its chain of more than 50 health clubs.

"The most likely scenario for survival appears to be the disposal of the health club business, albeit initial valuation estimates of up to £140m looked optimistic," Ms Wynne added.

JJB reported last month that like-for-like retail sales slumped 8.9% between July 28 and December 7.

It also warned market expectations of its profits would depend on continuing a "good sales performance" in the January sales.
JJB said group chief executive Chris Ronnie will remain in the role, while incumbent chairman Roger Lane-Smith will become non-executive deputy chairman.

Mr Lane-Smith said: "At this time our priorities are to focus totally on our retail business and to strengthen our executive team. Sir David's move to executive chairman and Peter's appointment have my entire support."

Sir David was knighted in the New Year's Honours for services to retailing, having rescued Next from the brink of collapse in the 1980s and transforming the business during his time at the chain as chief executive and later chairman.

Other senior positions in blue chip companies have included non-executive deputy chairman of Morrison Supermarkets plc, and non-executive chairman of Shop Direct (Littlewoods).