JJB Sports approved CVA proposal

UK sporting company, JJB Sports, has announced that its proposal for Company Voluntary Arrangements(CVA) has now been approved by creditors. The company and subsidiary, Blaine Leisure Limited, had its arrangements approved

yesterday and therefore 'will not be in administration as a result.'

Mike McTighe, chairman of JJB, yesterday commented; 'Following the approval of the CVA proposals at the creditors meetings held this morning, approval by the shareholders further demonstrates the solid support for the company's turnaround.'

He continues, 'We would like to thank our landlords and creditors who have supported the company in this crucial vote. As a result, the management and the vast majority of our colleagues now have the opportunity to work alongside all stakeholders as we continue to achieve essential milestones in our turnaround.'

The proposals originally asked landlords to accept a 50% reduction in monthly rent on 89 stores, plus an additional amount for turnover rent, insurance, and service charge. It was also offering them the incentive of a share in the value of a restructured JJB of between £2.5million and £7.5m payable in two years time.

The CVA's also allowed JJB to pay owners of current outlets on a monthly, rather than quarterly basis for the next two years.