One of the UK’s largest landlords has dealt JJB a further blow after saying it will not back the struggling retailer’s company voluntary arrangement (CVA).
Capital Shopping Centres (CSC) - which owns or part owns St David’s Centre in Cardiff, Manchester Arndale Centre, Metrocentre in Gateshead and Lakeside in Essex – said today it will not be voting in favour of the CVA.
It is another blow for the struggling retailer, which tomorrow has to present its business plan to its banks to secure its future.
CSC executive director Kay Chaldecott told analysts at a meeting that CSC intended to vote against the CVA, the terms of which are expected to be revealed by the end of this month.
A spokeswoman for CSC has since confirmed the landlord’s position, that it will not be backing the JJB CVA. She said CSC would welcome the space back to re-let to other retailers. “There is a demand for larger sized units,” she told Retail Week.
JJB has 3 stores in CSC schemes, 2 of which - Metrocentre and Lakeside - would be affected by the CVA.
JJB said it would not comment on specific landlords but reiterated that conversations had been “open and constructive”.
Retail Week revealed JJB’s plans for a second CVA in two years at the start of February, and said that the move had angered landlords.
JJB told Retail Week last week that it had tried to make the CVA as landlord friendly as possible, by putting 50 stores under review rather than shutting them altogether alongside the 45 it wants to close immediately.