The creditors and shareholders of JJB Sports have given their support to the Brfitish retailer's latest proposal for company voluntary arrangements, its second in two years. The CVAs, which got the required backing of more than 75 percent of the landlords concerned, 96 percent of the company's unsecured creditors as 89 percent of its shareholders, are expected to help the company to achieve a financial turnaround.
The company's landlords will allow the closure of 43 stores by April 2012, leaving open the option of shutting down another 46 by April 2013. JJB will keep 147 stores, on which it will be paying rent on a monthly basis, and the landlords will get a share of as much as £7.5 million (€8.5m-$12.0m) of future profits in two years' time.
The British Property Federation, though concerned about the landlords' losses and the need for a second CVA, praised the stipulation of lump-sum payments for landlords, and said such a clause should be in any CVA.
The retailer now plans to raise £65 million (€74.0m-$104.2m) from a share issue, and to take advantage of a £25 million (€28.5m-$40.1m) loan deal previously agreed upon with the Bank of Scotland. The company is also applying to take its shares off from the premium segment of the London Stock Exchange, transferring them to its AIM counter as of April 28.
