KPMG’s Green upbeat on JJB deal
THE busineess turnaround expert driving JJB Sports’ Company Voluntary Agreement says landlords are responding positively to the retailer’s proposals.
Brian Green, the mastermind of the only previously-successful retail CVA – shoe repair chain Mr Minit in 2003, said he is “hopeful” that JJB’s creditors will accept the CVA.
Mr Green, head of KPMG corporate restructuring in the North West said JJB’s future was in the hand of “between 15 and 20 landlords” controlling the 120 closed shops.
He said: “The response from the landlords has been very positive. The proposal is fair and of course as we meet them in the run up to the vote later this month we will be highlighting that the return to creditors under the proposed CVA is significantly better than it would be under the alternative of administration”
Apart from the Mr Minit deal, a number of other proposed CVA deals have been shunned by landlords.
Mr Green said this does not mean the JJB deal is doomed to fail: “Unlike any previous CVA proposal, there are no major changes to the terms of the open store leases aside from a temporary amendment for rent to be paid monthly over a 12 month period starting from the next quarter date.”
The landlords of closed stores will share in a pot of £10m which, on average, should provide a return in excess of six months rent.
Creditors will vote on the scheme at a meeting in London on April 27. JJB needs 75% approval for the deal to proceed.
