JJB shareholders approve CVA deal

JJB Sports’ shareholders have approved the plan to seek a company voluntary arrangement.

Some 99% of unsecured creditors approved the deal on Monday and it was rubber-stamped by more than 50% of shareholders today. The CVA is expected to come into force on May 28 if it is not subject to a legal challenge.

It is a move that sees the struggling retail chain become the first plc to avoid collapse following a consensual agreement with its creditors.

It has negotiated new terms with its landlords, which include paying monthly rents on 250 shops, while stumping up £10m to the owners of the 140 stores it wants to close.

Chairman Sir David Jones said: “We are delighted by the result of the meetings and the support given to the company by our creditors on Monday and our shareholders today.

“The approval of the CVA proposal by creditors and by shareholders 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.”