Landlords' deal saves JJB from administration

Published 28th Apr 2009

Struggling sports retailer hopes new rent arrangements will safeguard 12,000 jobs


Struggling retailer JJB Sports staved off administration today after creditors voted overwhelmingly for the board's rescue plan. About 99% of unsecured creditors – mainly its landlords – voted for the so-called company voluntary arrangement (CVA) at a meeting in London.

It will see 140 stores closed and JJB paying rent monthly instead of quarterly on its remaining 250 shops. It is hoped the plan will safeguard 12,000 jobs.

Sir David Jones, chairman, said: "The approval of the CVA proposal is a major step forward in the board's strategy to secure JJB's long-term future by creating a stable financial platform for the revitalisation of our core sports retail business."

The quarterly payments system re­quired three months' rent in advance, an amount many businesses can no longer afford. House of Fraser, Topshop and USC have already renegotiated monthly payments with landlords.

Landlords of the closed JJB stores – which include large property firms such as British Land, Hammerson and Land Securities – will be compensated from a £10m fund put aside by the company.

JJB has been struggling since the start of the year when it issued a profit warning after heavy discounting over Christmas.

Source: ' Guardian '

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