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09 Apr 2009
A detailed plan for the rescue of JJB Sports using a company voluntary arrangement has been placed before creditors for a vote.
The JJB plan is seen by many in the turnaround profession as setting a trend that could be used by other failing retailers. The key element is a plan to persuade landlords of JJB’s stores to accept monthly rent payments instead of crippling quarterly bills. Richard Fleming, the KPMG restructuring partner in charge of the plan, said: ‘The directors believe that JJB will turnaround in the future.’
‘We are not asking for precedent that landlords will be stuck with,’ he added. ‘There is scope to use CVAs to promote corporate survival.’
Landlords of the sports retailer will share a pot worth £10m providing a return of just over six months rent. Creditors will vote on their approval of the CVA on 27 April with shareholders voting on 29 April.
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