Struggling sports retailer JJB Sports has pushed back the publishing of its proposed company voluntary agreement (CVA) following ongoing negotiations with creditors, it was announced today.
A final draft business plan has been delivered by JJB to Bank of Scotland but the retailer is now aiming to despatch the full CVA proposal document to creditors and shareholders by no later than March 4th instead of February 28th as first suggested.
JJB will need 75 per cent of creditors and 50 per cent of shareholders to agree to the terms of the CVA for it to be passed, which will allow the company to dispose of as many as 90 stores and adjust rental agreements on the remaining 150.
Mike McTighe, JJB Chairman said: “We are delighted to have achieved two further milestones this week – successful completion of the first capital raising and delivery of our revised business plan to BoS.
“With publication of our CVA document scheduled for next week, the Board and management team continue to work extremely hard to rebuild JJB.”
Discussion with landlords have been far from smooth thus far, with Capital Shopping Centres, landlords of four JJB stores, announced that it would not be supporting the CVA.
The retailer confirmed that it has actively engaged with landlords accounting for 47 per cent of its annual rental payments regarding the future shape of the group’s property portfolio.
McTighe added: “With the continued support of all the Company’s stakeholders, we remain confident that we can deliver a successful turnaround.”