D-day for JJB Sports’ crucial vote

a VOTE on stricken retailer JJB Sports’ controversial restructuring plan, that will effectively decide the firm’s fate, looks like going to the wire when creditors and investors gather today.
By The Newsroom
Published 22nd Mar 2011, 12:19 BST

JJB, battling for over two years to secure its future, has received public backing for its second company voluntary arrangement (CVA) in as many years from landlords Hammerson and Peel Holdings, and is also assured of the support of Blane Leisure Limited, its fully owned subsidiary in which a number of leases are held.

But other landlords remain angry, having supported JJB’s earlier plan only to see the sportswear retailer plead for more concessions.

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“We are not minded to support it, so in all probability we won’t,” said a source at a leading British property firm. “It might be close but you wouldn’t be surprised if they (JJB) got it through.”

JJB’s landlords face a stark choice – back the retailer’s proposal for store closures and reduced rent or see it collapse into administration, threatening 6,100 jobs and Britain’s biggest retail failure since Woolworths in early 2009.

JJB needs 50 per cent support.

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