JJB incentivises staff to boost recovery plans
Sports retailer to offer equity incentive plan to staff just months after KPMG pushes though company voluntary arrangement
JJB SPORTS hopes to continue its recovery through an incentive programme, announced just months after it entered its second insolvency process in as many years.
The sports retailer has released an equity incentive plan aimed at its directors and senior managers.
Earlier this year KPMG insolvency practitioners achieved a company voluntary arrangement (CVA) for the retailer. A CVA usually repays a portion of debt over a period of time, while allowing the business to continue trading. A CVA must be voted for by more than 75% by value of creditors to be pushed through.
The latest incentive scheme will see directors receive an aggregate 20% of any growth in the company once its market capitalisation surpasses £96.5m.
As part of the CVA, JJB Sports creditors will share in the future financial success of a sports retailer.