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JJB submits final CVA draft to BoS
Struggling retailer submits final draft of business rescue plan to Bank of Scotland
JJB Sports has submitted a final draft of its revised business plan to the Bank of Scotland, ahead of publishing details of its proposed Company Voluntary Arrangement (CVA) next week.
Detail of the CVA will be published in due course following ‘completion of the independent review of the plan and its funding requirements by advisers’, JJB Sports said.
This has been scheduled for no later than March 4, when it plans to have dispatched the CVA proposal document to unsecured creditors and shareholders.
JJB Sports needs 75 per cent of creditors and 50 per cent of shareholders to agree to the terms of the CVA for it to be passed, which will allow the company to dispose of as many as 90 stores and adjust rental agreements on the remaining 150.
Capital Shopping Centres, the landlord of four JJB Sports stores, is reported to be planning to reject the CVA, and is believed to be in favour of taking the stores back and re-leasing them.
However, JJB Sports said it has maintained ‘open and constructive dialogue with key creditors’.
“To date, JJB Sports has actively engaged with landlords accounting for 47 per cent of the company's annual rental payments regarding the future shape of the group's property portfolio,” a stock market statement read.
Mike McTighe, JJB Sports chairman, said: "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."
