UK sporting goods firm JJB Sports has announced that its proposal for Company Voluntary Arrangements (CVA) has now been approved by creditors.

The company and subsidiary Blane Leisure Limited had its arrangements approved this afternoon (22 March), saying it "will not be in administration as a result".

JJB outlined its second CVA proposals in as many years earlier in the month, as part of a restructuring to avoid going into administration.

Mike McTighe, chairman of JJB, said today: "Following approval of the CVA proposals at the creditors' meetings held this morning, approval by the shareholders this afternoon further demonstrates the solid support for the company's turnaround.

"We would like to thank our landlords and creditors who have supported the company in this crucial vote.

"As a result the management and the vast majority of our colleagues now have the opportunity to work alongside all stakeholders as we continue to achieve essential milestones in our turnaround."

It was originally reported that the proposals asked landlords to accept a 50% reduction in monthly rent on 89 stores, plus an additional amount for turnover rent, insurance and service charge. It was also offering them the incentive of a share in the value of a restructured JJB of between GBP2.5m and GBP7.5m, payable in two years' time.

The CVAs also allowed JJB to pay owners of current outlets on a monthly, rather than quarterly, basis for the next two years.