JJB Sports’ creditors have approved the struggling sports retailer’s CVA proposal.
The retailer said more than 75% of its unsecured creditors, the requisite amount needed to approve the CVA, had given the go ahead to its plan to shed 43 of its stores over the next year. Full details of the vote will be revealed later today.
JJB Sports chairman Mike McTighe said: “I am delighted that our CVA proposals have been approved at the creditors’ meetings held earlier today. JJB continues to develop strong relationships with its landlords who have supported the company in this process, and we look forward to working with them, alongside all our stakeholders, as we continue to achieve crucial milestones in our turnaround.”
JJB also needs the approval of its shareholders which will vote on the proposal at 2.00pm today.
JJB’s needed its CVA to be approved to stave off administration. It offered landlords some form of kickback when JJB’s fortunes turned around, meaning big name companies such as Hammerson and Peel Holdings supported the proposal.
However, some landlords were still frustrated over the fact this is JJB’s second CVA in two years. Capital Shopping Centres said earlier this month it would not approve the CVA.