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JJB CVA gets approval
Overwhelming number vote in favour of beleaguered retailer’s rescue plan
Creditors and shareholders have voted overwhelmingly in favour of JJB Sports’ proposed Company Voluntary Arrangement (CVA), details of which were published on March 3.
JJB Sports said the CVA proposals were approved by over 96 per cent of creditors and by over 89 per cent of creditors in Blane Leisure, its wholly owned subsidiary. In both JJB Sports and Blane Leisure, the CVA proposals were approved by over 75 per cent of the landlord vote.
JJB Sports had needed 75 per cent of creditors and 50 per cent of shareholders to agree to the terms of the CVA for it to be passed.
There had been talk of rival JD Sports taking over JJB Sports, although this was quelled a few weeks back, and since then JJB Sports has announced details of a £65m capital raising programme and £25m finance facility from it lender Bank of Scotland.
Mike McTighe, chairman of JJB Sports, said: "We are very grateful for the overwhelming support that we have received from our stakeholders today and the confidence that they have placed in JJB Sports' management to pursue a turnaround of the business over the coming years.
"Our focus is now on completing the capital raising to provide the necessary working capital to fund the on-going implementation of our turnaround plan."
Shareholders also approved by way of a special resolution the proposed cancellation of the listing of JJB Sports’ ordinary shares on the premium segment of the Official List and from trading on the London Stock Exchange's main market for listed securities and the application for admission of ordinary shares to trading on AIM
As a result, JJB Sports will submit a request to the UK Listing Authority to delist the ordinary shares from the premium segment of the Official List and from trading on London Stock Exchange's main market for listed securities and the company will apply for the ordinary shares to be admitted to trading on AIM.
It is expected that cancellation of the listing and trading of the ordinary shares on the premium segment of the Official List will take effect at 8am on April 28, with admission and dealings in ordinary shares on AIM to commence at the same time.
