JD Sports backs off as JJB seeks to reach creditors' agreement

JD Sports is not pursuing its takeover talks for rival JJB Sports while it awaits the outcome of the latter's proposed rescue plan.

Wigan-based JJB issued details on Friday of its last-ditch rescue attempt with the closure of 45 stores through a company voluntary arrangement (CVA). The closures could be followed by another 50 over two years.

A CVA allows troubled retailers to close or change the rental terms on unprofitable stores.

JJB, which employs more than 6,000 people, and its adviser, KPMG, have begun negotiations with landlords to get approval for the plan.

Although it's the retailer's second CVA in two years – many landlords are thought to be minded to support JJB thanks to its good communication with them over the past year and its obvious dire circumstances. Another possible plus is its chief executive, Keith Jones, who is well respected among the landlords.

Landlords have been critical of retailers that they believe have "unnecessarily" asked for CVAs, some of which have failed due to lack of landlord support, including footwear chain Stylo in 2009.

JJB needs to win the support of 75 per cent of its unsecured creditors and 50 per cent of its shareholders for the CVA to avoid administration. Some experts suggest a pre-packaged administration could be on the cards if the CVA fails, and that is when JD Sports is likely to circle the carcass.

The CVA details, including slashing JJB's rent and moving to monthly rather than quarterly payments, as well as the closures, will be sent to creditors and shareholders at the end of the month. It has said just 150 stores of its 245-shop estate are "core to its future".

JJB has confirmed plans to raise £31.5m with the support of its two biggest shareholders, Harris Associates and Crystal Amber, and of the Bill & Melinda Gates Foundation. This fundraising will be followed by another, necessary to keep the company alive past April.

Elsewhere in retail, Tom Knight, the former JJB boss, is in the running to take the reins from Neil Gillis at outdoor clothing firm Blacks Leisure this week, while DIY chain Focus is close to selling five leases to a supermarket – either Asda or Tesco – as it raises money to fund a new store design.

Sport
Romelu Lukaku
sportChelsea striker sends second teasing tweet of the day
News
peopleHowards' Way actress, and former mistress of Jeffrey Archer, was 60
News
Robyn Lawley
people
Sport
Japanese referee Yuichi Nishimura sprays a line after calling for a free kick for Brazil
sport
PROMOTED VIDEO
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior Investment Accounting Change Manager

£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...

BA/PM,EMIR/Dodd-Frank,London,£450-650P/D

£450 - £650 per day + competitive: Orgtel: My client, a leading bank, is curre...

Senior Analyst - ALM Data - Banking - Halifax

£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...

Java developer - Banking - London - Up to £600/day

£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...

Day In a Page

Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star
How live cinema screenings can boost arts audiences

How live cinema screenings can boost arts audiences

Broadcasting plays and exhibitions to cinemas is a sure-fire box office smash
Shipping container hotels: Pop-up hotels filling a niche

Pop-up hotels filling a niche

Spending the night in a shipping container doesn't sound appealing, but these mobile crash pads are popping up at the summer's biggest events
Native American headdresses are not fashion accessories

Feather dust-up

A Canadian festival has banned Native American headwear. Haven't we been here before?
Boris Johnson's war on diesel

Boris Johnson's war on diesel

11m cars here run on diesel. It's seen as a greener alternative to unleaded petrol. So why is London's mayor on a crusade against the black pump?
5 best waterproof cameras

Splash and flash: 5 best waterproof cameras

Don't let water stop you taking snaps with one of these machines that will take you from the sand to meters deep
Louis van Gaal interview: Manchester United manager discusses tactics and rebuilding after the David Moyes era

Louis van Gaal interview

Manchester United manager discusses tactics and rebuilding after the David Moyes era
Will Gore: The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series

Will Gore: Outside Edge

The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series
The children were playing in the street with toy guns. The air strikes were tragically real

The air strikes were tragically real

The children were playing in the street with toy guns
Boozy, ignorant, intolerant, but very polite – The British, as others see us

Britain as others see us

Boozy, ignorant, intolerant, but very polite
How did our legends really begin?

How did our legends really begin?

Applying the theory of evolution to the world's many mythologies
Watch out: Lambrusco is back on the menu

Lambrusco is back on the menu

Naff Seventies corner-shop staple is this year's Aperol Spritz