JJB has outlined proposals for its company voluntary arrangement (CVA) and details of a refinancing deal with its banks.
The landlords of JJB’s 140 closed retail stores will be able to make a claim against a fund of £10m, with two payment instalments, one at the end of September and one at the end of December.
JJB also wants to temporarily vary the leases of its remaining 250 open stores to permit monthly rent payments.
The CVA meeting for JJB’s creditors will take place in London on April 27 and a further meeting is scheduled for shareholders on April 29.
If the CVA is agreed JJB will be able to secure a new short-term banking facility of £25m from Barclays and a medium-term revolving £25m facility from Bank of Scotland.
JJB will also issue warrants to Bank of Scotland, subject to shareholder approval.
JJB executive chairman Sir David Jones said: “Following the initial announcement of our CVA proposal we have had a number of discussions with some of our key stakeholders, including our landlords.
“We are very encouraged by the initial feedback from these discussions with key stakeholders and hope their continued support will ultimately allow us to focus on realising the full potential of the group’s core sports retail business.”