JJB Sports has delivered a revised business plan to its lender Bank of Scotland and will release its detailed CVA proposal in the next week.
Advisers are reviewing the plan for JJB’s turnaround and its funding requirements. The struggling sportswear retailer said it would announce further details after this review was complete.
CVA proposals, which were due to be sent to landlords and shareholders next Monday, have been delayed as fraught discussions with landlords continued and will now be received by next Friday.
JJB is planning to close 45 loss-making stores over the next 12 months and may shed another 50, which are under review, after 2 years
The retailer said it had been in “open and constructive dialogue” with its landlords. It has spoken with landlords accounting for 47% of its rental payments.
One of the UK’s biggest landlords Capital Shopping Centres, which has 3 JJB stores, 2 of which will be affected by the potential CVA, dealt JJB a blow this week week saying it would not back the action.
JJB needs approval from 75% of its creditors for the CVA to be accepted. Along with the CVA, JJB needs an extra cash injection from shareholders to fulfil its revised business plan, on top of the £31.5m its investors signed off last week.
JJB Sports chairman Mike McTighe said: “We are delighted to have achieved two further milestones this week - successful completion of the first capital raising and delivery of our revised business plan to BoS.
“With publication of our CVA document scheduled for next week, the board and management team continue to work extremely hard to rebuild JJB. With the continued support of all the company’s stakeholders, we remain confident that we can deliver a successful turnaround.”