JJB has come one step closer to securing its future as its company voluntary arrangement (CVA) was today approved by the majority of its creditors.
This is one of the first major CVAs to be approved in the retail sector since the downturn.
JJB Sports executive chairman Sir David Jones said: “We are delighted by the result of the meetings and the overwhelming support given to the company by our creditors, with every creditor present at the meeting supporting us. The approval of the CVA Proposal by creditors is a major step forward in the board’s strategy to secure JJB’s long-term future by creating a stable financial platform for the revitalisation of our core sports retail business.”
In an announcement the group said that if the CVA is not subject to any successful challenge it will become effective on or around May 28.
JJB will now be able to continue trading its core business having sold its fitness chain to JJB’s founder Dave Whelan and putting its loss-making lifestyle business, including Qube and Shoe Studio, into administration.
Executive director Peter Williams told Retail Week that he was confident that if the CVA was approved that there would be a secure future for the retailer, but admitted there was more work to be done.