JJB looks at second CVA to survive

Struggling sportswear retailer JJB Sports said it plans to close another 45 stores as it proposed a second company voluntary arrangement (CVA) to creditors in as many years to keep the business afloat.

By The Newsroom

Published 12th Feb 2011, 06:00 BST

The firm, in which America’s richest man Bill Gates holds 5.5 per cent, said approval from shareholders and creditors of its new CVA would let it continue trading while striking a deal with landlords to close stores and pay only part of the rent.

Last week, JJB said it had been approached by thriving rival JD Sports Fashion about a takeover and confirmed plans for emergency fundraising of £31.5m.

JJB again cautioned yesterday it required a larger capital raising, in addition to the £31.5m, to survive.

It warned it would “no longer be able to trade as a going concern, which would result in the appointment of receivers, liquidators or administrators”, without this additional cash.

JJB was driven to the brink during the recession, but survived thanks to a deal to sell its fitness clubs to founder Dave Whelan.

Bill Gates