UK: JJB gets backing for rescue plan
JJB says Nike and Adidas are behind its plans
Key investors in UK sporting goods retailer JJB Sports have backed a rescue plan that includes raising an extra GBP65m (US$104m) in funds - as long as it can cut a deal with landlords.
The company said this morning that it has secured support from each of its major shareholders - Harris Associates, Crystal Amber, Invesco Asset Management and Bill & Melinda Gates Foundation Trust - to take part in the capital raising.
However, the move to raise more money will only go ahead if JJB's plans for a company voluntary arrangement (CVA) is approved at a meeting of creditors and shareholders next week (22 March).
The CVA proposals, outlined earlier this month, want landlords to accept a 50% reduction in monthly rent on 89 stores, plus an additional amount for turnover rent, insurance and service charge. They are also being offered a share in the value of a restructured JJB of between GBP2.5m and GBP7.5m, payable in two years' time.
The CVA would allow JJB to pay owners of current outlets on a monthly, rather than quarterly, basis for the next two years.
Today (15 March) the retailer said suppliers including Adidas Group and Nike "remain strongly supportive of JJB and its future plans." It has also has agreed a loan of GBP25m until 31 May 2014 with Bank of Scotland.
JJB, which last week saw takeover interest from UK rival JD Sports fade, said trade has achieved "internal expectations" - with "very encouraging results" from six transformed stores.
"JJB's restructuring continues as planned," notes chairman Mike McTighe. "The whole management team remains focused on this restructuring and committed to delivering a stable future for JJB and its employees.
"The next key stage in the process is the creditor and shareholder votes next week. The board remains confident of the success of this turnaround and the future prospects for the company."
While the goal for many clothing manufacturers and brands is to gain an international presence, there is a key risk associated with selling the same designs in different global markets - the more far ...
Featured research this week includes a look at the luxury goods sector, insight into the latest developments in computer aided design and an analysis of the Australian wool wholesaling sector....
Swedish fashion retailer H&M was ranked as the world's number one user of organic cotton last year - taking it closer to its goal of only using cotton from more sustainable sources by 2020....
Neither the recession nor unstable economies have put a damper on the fast-growing organic textiles industry, according to a new report, which shows the sector grew by 20% to an estimated $5.61bn in 2...
A conference on sustainability issues in the textile industry taking place in Barcelona later this year has added an extra workshop session on Greenpeace's Detox Campaign to eliminate the release of h...
News that the Vietnamese government plans to increase minimum wages garnered many readers' interest this week, while interest in sustainability continued unabated with Adidas joining Nike and Puma in ...
Sporting goods giant Adidas has become the latest company to win praise from environmental pressure group Greenpeace for pledging to eliminate the release of hazardous chemicals throughout its supply ...
- Low labour cost countries linked to highest risks
- Why should brands care about China cotton?
- UK reshoring hub hit by sweatshop claims
- New fibre and fabric innovations for outdoor wear
- COMMENT: Skills or new technology?
- South Africa to grow grass for recyclable textiles
- US West Coast port contract reached
- 30% of Adidas cotton from sustainable sources
- Activewear driving US apparel spend
- Benetton to embark on living wage roadmap
- Outdoor performance apparel: peaks, valleys, and green fields
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Global market review of swimwear - forecasts to 2019
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Apparel Retail: Top 5 Emerging Markets Industry Guide