Home / Knowledge / News / JJB Sports PLC outlines plans for CVA
JJB Sports PLC outlines plans for CVA
27
Mar '09
JJB Sports PLC, one of the UK's leading high street sports retailers, announces a series of measures intended to address the Group's current financial difficulties and to create a stable financial platform for the revitalisation of its core sports retail business.

Highlights
• Disposal of the Fitness Clubs business (including the fitness clubs and attached retail stores, the Cardiff MiFit fitness club and retail store and certain committed fitness club sites) (the "Fitness Business") and related stock to Dave Whelan Sports Limited, a company controlled by Mr David Whelan, for an approximate total cash consideration of £83.4 million (the "Disposal").

• Waiver granted by the United Kingdom Listing Authority (the "UKLA") under Listing Rule 10.8, available only for companies in severe financial difficulty, in respect of the requirement to issue a circular and obtain shareholder approval for the Disposal.

• Proceeds of the Disposal will initially reduce the Company's borrowings under its working capital facilities, but will ultimately be used to fund the Company's short term working capital requirements.

• All March quarterly rents will be paid in full, following which the Company will propose a company voluntary arrangement ("CVA") to compromise claims of landlords of approximately 140 closed retail stores and temporarily vary the terms of the leases of approximately 250 open retail stores to permit monthly rent payments (the "CVA Proposal").

• Further extension of the standstill arrangements with the Company's existing lenders, Barclays, Lloyds (formerly HBOS) and Kaupthing Singer & Friedlander Limited (in administration) (the "Lenders") until the CVA Proposal has been approved and become effective, conditional, inter alia, upon receipt of deferred consideration from Dave Whelan Sports Limited in accordance with the terms of the transaction documentation and on the Lenders remaining satisfied with the progress of the CVA Proposal and the trading performance of the Company.

• Conditional upon the CVA Proposal being approved and becoming effective, proposed new funding arrangements through a short term £25 million term loan with Barclays and a medium term £25 million working capital facility with Lloyds, together with a possible issue of warrants to Lloyds in connection with their continuing support of the business.

• Board changes including the dismissal of Christopher Ronnie, former Chief Executive, announcement of intention to resign by David Madeley, Finance Director and appointment of Richard Manning as Legal Director and Company Secretary.

• "Serious about Sport" strategy under the leadership of Sir David Jones to revitalise the Continuing Group's core retail business and reposition it in the market place.


Must ReadView All

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Textiles | On 22nd Jun 2017

Hpfabrics opening production facility in Forsyth County

Hpfabrics, manufacturer of raw fabrics, is opening a new production...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search