At meetings last week, the creditors and members of Blacks Leisure Group and its subsidiary The Outdoor Group (TOG) approved company voluntary arrangements (CVAs) settling claims with the landlords of 101 stores that are closed or closing and another nine that had guarantees from the company. The landlords y will also change the lease terms for 291 stores to monthly payments instead of quarterly ones for a year and a half.
The CVAs passed with the approval of more than 97 percent of the creditors and 99.98 percent of the shareholders, while the TOG agreement was OKed by 100 percent of members voting. If no legal challenges are posed to the agreements, they are expected to go into effect around Dec. 23.
CVAs are arrangements with specific kinds of creditors that prevent a company from going into administration, a form of insolvency. Another British sports retailer,JJB Sports, used this technique earlier this year (more in The Outdoor Industry Compass).
