Future of JJB secured with CVA approval
JJB has won its bid for a company voluntary arrangement meaning the future of the business is now secured.
The sports chain, which has its head office based in Wigan, needed at least 75% of its creditors to approve the plan for it to go ahead and more than 99% of creditors voted in favour of it.
The success of JJB's CVA is said to be down to the fact that it was offering landlords of its 140 closed stores six months rent.
Without the CVA going ahead it is thought JJB would have gone into administration and landlords of its closed shops and others would have been left with very little.
JJB's CVA proposal also included that JJB will pay rent on a monthly basis, instead of quarterly, for the next 12 months on 250 of its trading stores.
Landlords of the closed shops are offered part of a £10m package, which translates to around six months' worth of rent for the closed stores.
KPMG was 'supervisor' of the CVA.