The creditors of JJB Sports will meet today to decide whether to allow the leisure wear seller to go ahead with a company voluntary arrangement, in a move that could see the retailer become the first large UK-listed business to avoid going into administration following a consensual agreement with its creditors.
While far from assured, the likelihood of JJB securing the deal today appears to be much better than was the case with Stylo three months ago, largely due to a more positive relationship between JJB and its landlords during the course of the negotiations. This makes it more likely that the landlords will support the arrangement.
According to the terms of the CVA, which will be put to landlords today, JJB will pay rent on a monthly basis – instead of quarterly – for the next 12 months on 250 stores it is renting.
Financial Times, The Times