For the second time creditors have voted in favour of a company voluntary arrangement, CVA, for sports retailer JJB.
A company voluntary arrangement is a legally binding agreement between a Company and its creditors, supervised by and insolvency practitioner.
The CVA terms will see the closure of some stores and all tenants within the JJB property portfolio will move to monthly rent payments for the next two years.
Some 43 stores, two of which are not trading, will close on or before 24 April 2012. The CVA will also allow JJB to review the performance of a further 46 stores and enable closure of them on or before 24 April 2013, if the performance cannot be improved.
What is a Company Voluntary Arrangement?
A CVA is based on preserving the company, rebuilding sales and profits and paying something back over a period of time to be agreed. Directors remain in control, personal guarantees don’t get called in (usually) and it gives your business a fighting chance to survive.