CSC to oppose JJB’s CVA deal
CAPITAL Shopping Centres has said it plans to oppose JJB’ Sports’ plans to complete a second Company Voluntary Arrangement (CVA) in as many years.
The company, which has four JJB stores in its portfolio of 16 centres including the Lakeside centre in Thurrock, Gateshead’s Metrocentre and Manchester’s Trafford Centre, told analysts at a meeting to discuss its annual results yesterday that it has yet to see the proposals JJB is planning to put to its landlords at the end of February but was minded to vote against them.
JJB announced plans for the second CVA earlier this month, which would allow it to offload 45 under performing stores immediately and potentially shed another 50 within two years, leaving it with a “core” of 150 more profitable outlets.
The Wigan-based sportwear retailer had said that without the agreement of landlords for the deal, it was likely to enter into administration, which would put 6,000 jobs at the chain at risk.
Last week, the company agreed a refinancing deal with its shareholders which has allowed it to raise a further £31.5m through a placing and open offer.
JJB has also held early-stage talks with Bury-based JD Sports about a potential merger, but it is understood to have backed off from a potential deal until JJB completes its restructuring.
