One of sports retailer JJB Sports’ major shareholders has announced today that it will back the company voluntary agreement (CVA) being voted on next week.
Peel Holdings has six properties which will be affected by the scheme, which if approved will mean that rents paid by JJB will drop by as much as 50 per cent.
Capital Shopping Centres, which Peel Holdings Chairman John Whittaker is a non-executive director of, previously came out against the deal complaining it was not fair on landlords.
Whittaker said today: “We have studied the proposals in detail and looked at all the options and feel the CVA proposed by JJB Sports is, in the circumstances, by far the most attractive, and will enable JJB Sports to recover to financial health.
“The only likely alternative would be administration for JJB Sports, which would result in a significant loss for all landlords.
“Additionally, it would have a sizeable, damaging impact on competition within the retail sporting sector, which must also be of concern to landlords and customers.”
Next Tuesday shareholders and creditors will vote on the CVA, with previously agreed funding needed for the firm to survive conditional on its approval.
If passed, 43 JJB stores will close in the next year with a further 46 put under consideration of disposal before April 2013.
Whittaker continued: “JJB’s restructuring proposals involve all its key stakeholders joining forces to ensure its survival and we are prepared to play our part. We call on JJB Sports’ other landlords to do likewise.”