Troubled sportswear firm JJB Sports was saved from going into administration yesterday after landlords backed crucial changes to the terms of its leases.
Landlords and creditors of JJB voted overwhelmingly in favour of a company voluntary agreement (CVA) at a creditors meeting in London in a move that has prevented the struggling chain from collapsing.
The final votes still have to be confirmed, but prior to the meeting around 99 per cent of creditors voted by proxy in favour of the CVA to ease the firm’s rent burden and none of those present voted against or abstained. The agreed rescue plan, which needed more than 75 per cent approval, allows JJB to offload lease liabilities on 140 closed retail stores and pay rent on a monthly basis at its 250 remaining open outlets for a year.
JJB had been granted a £50 million lifeline by lenders, but this was dependent on it striking a deal with landlords under the CVA proposal and the retailer had warned it was facing administration if the agreement was not passed.
Sir David Jones, chairman at JJB, said: “The approval of the CVA proposal is a major step forward.”