JJB avoids administration

| April 28, 2009 | 0 Comments

Retailer JJB Sports has managed to escape the clutches of administration as landlords and creditors have come to an agreement which will save 10,000 jobs.

Landlords of more than 400 stores have agreed to accept new payment terms and without the backing of 75 percent of the landlords, JJB would have fallen into administration.

Creditors have agreed to the Company Voluntary Agreement (CVA) that was suggested by their advisers KPMG.

Richard Fleming of KPMG said that the meeting was a success with 99 percent of creditors voting in favour of the CVA.

Sir David Jones, the executive chairman of JJB, said that it is a very positive step for the retailer after having sorted out their debts by selling the gym business to former owner Dave Whelan, whilst other assets such as a helicopter and a stake in Slazenger are also in discussion; the immediate future of the chain is now secure.

A benefit of the CVA means landlords of closed stores will receive in the region of 13.2p in each pound against 0.1p if the retail chain were to go into liquidation.

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