UK retailer JJB Sports has been saved from a possible collapse by a vote in favour of company voluntary arrangements (CVA) proposals by creditors.

It means the sporting goods chain avoids going into administration, and will pay off landlords of closed stores with one-off payments instead of ongoing rent. The CVA also allows JJB to pay owners of current outlets on a monthly, rather than quarterly, basis.

Creditors met today (27 April) to consider the proposals, which were approved by a majority in excess of 75%.

Sir David Jones, executive chairman of JJB, said: "We are delighted by the result of the meetings and the overwhelming support given to the company by our creditors, with every creditor present at the meeting supporting us.

"The approval of the CVA Proposal by creditors is a major step forward in the board's strategy to secure JJB's long term future by creating a stable financial platform for the revitalisation of our core sports retail business."

JJB announced on 6 April that its directors and wholly owned subsidiary Blane Leisure Limited had finalised the terms of the CVA proposals.

The proposals aim to relieve JJB of its most crippling liabilities, as the company is currently paying GBP17.3m (US$25.3m) a year in rent and charges for the 100-plus stores it has closed in the recent past.

If the CVA proposal is not subject to a successful challenge, it is expected to become effective on or around 28 May 2009, a statement said.