JJB Sports, the troubled sportswear retailer, lived to fight another day yesterday after creditors approved an insolvency procedure to safeguard its immediate future by shedding up to 89 stores and slashing its rent bill.
More than 75 per cent of landlord creditors voted in favour of JJB's second company voluntary arrangement (CVA) in as many years, which the sports equipment chain had proposed to stave off collapse.
Under the terms of the CVA, the 246-store chain plans to close 43 stores by next April, plus a further 46 by April 2013 if its performance does not improve.
JJB offered the compromised landlords an additional payment of between £2.5m and £7.5m on 24 April 2013, dependent on its market capitalisation. The CVA's approval means that JJB can now push ahead with tapping its major shareholders for £65m through a firm placing and open offer. This is in addition to the £31.5m it raised in December. JJB has secured a new three-year, £25m working-capital facility with Bank of Scotland. KPMG supervised this CVA and the one in 2009.