JJB has received a positive response from its creditors over its proposed company voluntary arrangement (CVA), giving it fresh hope that its future can be secured.
According to sources, of the replies sent back by proxy, all – amounting to almost 100 – voted yes to the CVA.
JJB executive director Peter Williams said: “We have had a lot of discussions with lots of landlords and creditors and are cautiously optimistic based on a good outcome of these discussions.”
Williams said he understood the situation is difficult for the landlords of its 140 closed shops as they will only be able to claim against a £10m fund if the proposal goes ahead. He said: “I appreciate that those with closed doors are taking a financial haircut.”
He added that he hoped all landlords would vote so the outcome is as fair as possible. The creditors’ final vote is on Monday, and the shareholders will vote on Wednesday.
Williams was also adamant that JJB’s CVA would not set any kind of precedent for how restructuring is carried out in the sector. He said: “Ours is unique in terms of where JJB finds itself. I am not sure if this is an exemplar for CVAs and we have been at pains to differentiate from those that have gone before.”
Williams said that if the CVA is approved he will be confident of the retailer’s future. He admitted that there was still a lot to sort out in the business that he and executive chairman Sir David Jones have been battling to save since January.