Creditors of struggling sports retail chain JJB Sports have backed its plan to avoid going into administration.
At a series of meetings today, creditors representing more than 75 per cent of JJB’s outstanding debts approved the company voluntary arrangement proposed by the board on 3 March.
The CVA proposal, an alternative to going into administration, asked creditors, principally its landlords, to accept reduced payment on the amount owed by the company.
"I am delighted that our CVA proposals have been approved at the creditors’ meetings held earlier today,” JJB chairman Mike McTighe.
“JJB continues to develop strong relationships with its landlords who have supported the Company in this process, and we look forward to working with them, alongside all our stakeholders, as we continue to achieve crucial milestones in our turnaround.”
JJB had proposed closing 43 shops by April next year, cut its rent payments by half and move to monthly rather than quarterly payments.
It would retain a core 150 stores and, if the plans work, it also proposed returning between £2.5m and £7.5m to landlords in April 2013.