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.
To read more:
JJB
plan could be blueprint for other struggling retailers
Pre-pack
dominance ignores better options
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