JJB Sports PLC, the U.K. sporting goods chain, has finalized terms for company voluntary arrangements (CVA) as it looks to save its remaining stores. This CVA enables a company to reach an agreement with its unsecured creditors and restructure debts.
Under the agreement, landlords will compromise terms for around 140 closed stores and temporarily vary the terms of the leases for 250 open stores to permit monthly rent payments. Landlords will be able to make a claim against a £10 million ($14.7 million) million fund.
If the CVA proposal goes ahead, JJB will receive a short-term £25 million ($36.7 million) term loan with Barclays PLC and a medium-term £25 million ($36.7 million) revolving facility with Bank of Scotland PLC.
Executive Chairman David Jones said the board “is strongly of the view that the CVA proposal is in the best interests of the group and its stakeholders as a whole.”
The CVA requires the approval of more than 50% of shareholders. The shareholder meeting will take place in London on April 29.