As reported over the past month, several retailers were heavily affected by this summer’s riots. Some have sustained damages and loss totalling more than £1 million. JD Sports sustained significant losses and are leaving open the possibility of bring suit against police who are obligated by law to contain riotous crowds and compensate victims when unable to do so.

Although the reported loss of stock was £700,000, JD Sports could also claim loss of revenue as the result of the enormity of damages sustained when police were unable to keep the rioting crowds under control. Once labour and the cost of materials for repairs are tallied along with lost revenue from locations being closed for repairs, the end figure could be in the millions. JD was particularly targeted as six stores in London sustained significant damage.

Commenting on the situation, Peter Cowgill (executive chairman) would not rule out JD’s right to claim compensation for damages under the Act. In the Riots Act, compensation from police authorities is a requirement. The bottom line to taxpayers could end up being as high as £100 million, and that is just one figure calculated by The Guardian in August. This is a total estimation of damages which could be awarded to all claimants, not just JD.

Along with their insurance brokers, JD is deliberating whether or not to invoke their rights under the Riot Act in order to pursue a claim for loss and damages. Whilst some companies such as Sainsbury waived their rights to a claim, Cowgirl states that JD’s losses were much more widespread and extreme. There is however some amount of controversy over whether losses are the result of riots or a downturn in the economy. Whether or not they decide to file claim may depend on the answer to that question.

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