JJB Sports survives after creditors cave in
As we covered in one of our recent post, today was D-Day for JJB sports with a meeting of creditors to discuss a potential change in the company's leasing arrangements. Thankfully for the company, 99% of creditors voted in favour of the company's proposal, even though just 75% were required to push through the changes. It now appears as though the short to medium term future of JJB sports is secure as this will not only allow new leasing arrangements to be put in place but will see the company relieved of liabilities regarding shops which are no longer trading.
Many experts in the retail sector expect a flurry of similar moves by others who are suffering the same fate as JJB Sports. Despite the rejection of an almost identical scheme by Stylo earlier this year this may well be a turning point in the recovery of the UK retail sector. JJB Sports recently rescheduled its debts, improved its cash flow and is now on course to at least remain competitive in one of the most challenging retail sector trading environments for many years. However, it is worth remembering that today's announcement also secures nearly 12,000 jobs across the UK at a time when unemployment continues to rise.
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