One of JJB’s largest landlords Peel Holdings has bolstered the struggling retailer’s survival plans by backing its CVA proposal.
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Peel, which has six properties affected by the scheme, came out in favour of the scheme, and urged other landlords to do likewise, ahead of the official creditors vote next Tuesday.
Peel Holdings chairman John Whittaker said: “We have looked at all the options and feel the CVA proposed by JJB Sports is, in the circumstances, by far the most attractive, and will enable JJB Sports to recover to financial health. The only likely alternative would be administration for JJB Sports, which would result in a significant loss for all landlords.
“Additionally, it would have a sizeable, damaging impact on competition within the retail sporting sector, which must also be of concern to landlords and customers. JJB’s restructuring proposals involve all its key stakeholders joining forces to ensure its survival and we are prepared to play our part. We call on JJB Sports’ other landlords to do likewise.”
Fellow landlord Capital Shopping Centres came out against the proposal last month.
JJB plans to shed 43 stores by April 2012 and is reviewing the future of a further 46 stores which it will decide whether to close over the next two years. The ailing retailer unveiled its new business plan this week which aims to steer it back to profit in three to five years.