Landlord’s backing gives boost to JJB

Have your say

JJB, the sportswear retailer, took a step closer to securing support for its controversial rescue plan after one of its biggest landlords gave the scheme its backing.

The Wigan-based company plans to close up to 89 unprofitable stores over the next two years through a company voluntary arrangement (CVA) as it tries to stave off administration.

It has offered landlords of stores that are shut a sweetener of up to £7.5m in cash or shares in two years depending on its performance.

One of its biggest landlords, FTSE 100-listed Hammerson which owns six stores that may be closed, has given its support to the scheme ahead of shareholder and creditor votes tomorrow, said The Sunday Times.

Hammerson said: “We have held extensive discussions with JJB and we are comfortable that this restructuring affects all creditors equally.”