JJB, the UK-based high street sports retailer, has announced the sale of properties as part of a series of measures to address the company's financial difficulties.
JJB, the UK-based high street sports retailer, has announced the sale of properties as part of a series of measures to address the company's financial difficulties.
In a statement, JJB said it has sold its Cardiff MiFit fitness clubs and attached retail stores to Dave Whelan Sports, a company controlled by David Whelan, for an approximate total cash consideration of £83.4 mln (EUR 89 mln). The proceeds from the disposal will be used to reduce the company's borrowings and to fund the company's short-term working capital requirements.
JJB Sport said it expects to pay in full all March quarterly rents after which the company will propose a company voluntary arrangement to compromise claims of landlords of approximately 140 closed retail stores and temporarily vary the terms of the leases of approximately 250 open retail stores to permit monthly rent payments. The group is also seeking further extension of the standstill arrangements with its lenders, Barclays, Lloyds (formerly HBOS) and Kaupthing Singer & Friedlander Limited.
Conditional upon the approval of the proposal, the company should receive new short-term £25 mln funding from Barclays and a medium term £25 mln working capital facility with Lloyds.
