Blacks Leisure’s Company Voluntary Arrangement (CVA) has been approved by 98% of its landlords at a creditors meeting.
The CVA, which needed to be agreed by 75% of the landlords, means the outdoor specialist can exit the leases for 89 of its stores. Blacks will still pay for around 6 months rent for the closed stores from a £7.25m compensation pot and be liable for rates until leases run out or the units are let.
KPMG and Jones Lang LaSalle advised Blacks on the restructure.
The proposal will now be put to shareholders at a separate meeting tomorrow.
Blacks chief executive Neil Gillis said: “We are delighted with the overwhelming support the CVA proposals have received today, being passed almost unanimously with votes in excess of 97% in both cases. This outcome is a powerful endorsement by the creditors of the company that the CVA is in the best interests of all concerned. The process addresses a long-standing issue at the heart of the Group’s difficulties in recent years - its tail of unprofitable stores - creating a significantly stronger business and, crucially, preserving over 4,000 jobs. With this support secured, we can now focus on realising the potential of the Group’s market leadership position in outdoor retail once again.”