JJB landlord refuses CVA

Marion Dakers
ONE of sports retailer JJB’s major landlords refuses to back the struggling firm’s last-ditch attempt to avoid administration, City A.M. can reveal, putting the success of today’s company voluntary agreement (CVA) vote to the wire.

Land Securities, which leases around eight stores to JJB, has told other landlords it will vote against the controversial CVA at an investor and creditor meeting today.

Other major landlords including Prupim, Hammerson and Peel Holdings are set to approve the restructuring, which will see rents move from a quarterly to a monthly payment and up to 89 unprofitable stores closed.

“It’s likely to sneak through, but without the support of all four of its big landlords, JJB needs to really convince the smaller ones,” said one person familiar with the situation.

JJB needs the support of 75 per cent of its unsecured creditors and 50 per cent of all shareholders to stave off administration.

JJB hopes its second CVA in as many years will save at least 150 shops.