JJB Sports’ proposed company voluntary arrangement (CVA) has been further bolstered as it wins landlord Hammerson’s backing.
Hammerson, which owns six of the affected shops, told The Sunday Times it would support the CVA proposal ahead of Tuesday’s vote.
The ailing sportswear chain’s “sweetener” to landlords, offering up to £7.5m of its market value if it recovers or is taken over, has influenced Hammerson’s decision to back the CVA plan.
Fellow landlord Peel Holdings also gave JJB’s proposal the green light last week.
JJB plans to shed 43 stores by April 2012 and is reviewing the future of a further 46 stores which it will decide whether to close over the next two years. The retailer will pay landlords 55% of the contracted rent on a monthly, rather than quarterly basis.
Meanwhile, discount department store TJ Hughes has had its credit insurance pulled according to The Sunday Times.
One of the UK’s largest credit insurers Euler Hermes has stopped insuring suppliers to the 57-store retailer. The decision comes after TJ Hughes refinanced using an asset-based facility with Burdale, an arm of the Bank of Ireland, to give it access to £15m to £20m of working capital.
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