It has just been confirmed that a vote on the second company voluntary agreement (CVA) proposed by sports retailer JJB has been approved by over 75 per cent of its creditors.
Capital Shopping Centres and Hammerson had publically come out against the deal, but enough landlords supported the motion for it to pass.
As part of the deal rental rates will drop by 50 per cent and 43 stores will close in the next year, while a further 46 could be sold in the next 24 months depending on performance.
The CVA was vital, along with the £65 million in capital raising agreed with shareholders last week and a new credit agreement, in order for the company to stay afloat.
Mike McTighe, Chairman, said: “I am delighted that our CVA proposals have been approved at the creditors’ meetings held earlier today.
“JJB continues to develop strong relationships with its landlords who have supported the company in this process, and we look forward to working with them, alongside all our stakeholders, as we continue to achieve crucial milestones in our turnaround.”
At 14:00 GMT a shareholder meeting will take place, giving them the chance to vote on the proposal.
Even if they do not vote in favour of the motion, in accordance with the Insolvency Act 1986, the creditors decision will prevail subject to the right of any member to appeal via court.
Landlords will now not have to face JJB going into administration but received lower rents and it has been suggested be open to other retailers taking similar measure in the near future.
JJB conducted its first CVA in 2009, when 140 of its stores were closed down.