Creditors back JJB

Investors who piled into the shares of troubled sportswear retailer JJB Sports ahead of the vote on the company's proposed restructuring called the outcome correctly, as creditors backed the company's plans.JJB said the CVA (Company Voluntary Arrangement) proposal was approved without modification by a majority of more than 75% in value of the unsecured creditors of the company and its wholly owned subsidiary, Blane Leisure. The CVA proposal recommended the closure of 43 stores on or before 24 April 2012 and a review of the performance of a further 46 stores which could be closed on or before 24 April 2013 if performance does not pick up.JJB also asked for rents on these properties to be halved and for a switch to monthly rather than quarterly rent payments for the next two years.Landlords will get between £2.5m and £7.5m in cash or JJB shares linked to the market performance of the company on 24 April 2013 in return for agreeing to the new rental terms. As set out in the CVA proposal document, CVA members' meetings will be held at 2.00 p.m. (Tuesday, 21 March) and the results of these meetings will be announced as and when available, the company said."I am delighted that our CVA proposals have been approved at the creditors' meetings held earlier today. JJB continues to develop strong relationships with its landlords who have supported the company in this process, and we look forward to working with them, alongside all our stakeholders, as we continue to achieve crucial milestones in our turnaround," said JJB chairman Mike McTighe.