With the new directors in place, looks like JJB might recover?

hyleo - tend to disagree - as long as the cva goes ahead and i believe it will despite landlord rumours etc then jjb will be in the kind of state jd want it and for jd to keep it away from their main competitor sd- but nail biting times for jjb imminent - at first glance the news looks bad, jd are intersted but can not say much right now, the 5 ii investors propping jjb up at 5p new shares, other interested parties etc of course there is also the other matter of tribunals for some former employees! one director already paid off! what a pigs ear this is - but i am sticking with this - i am just thankful i got in low - it may well drop more.... more news:

JD Sports backs off as JJB seeks to reach creditors' agreement

By Laura Chesters


Sunday, 13 February 2011

JD Sports is not pursuing its takeover talks for rival JJB Sports while it awaits the outcome of the latter's proposed rescue plan.


Wigan-based JJB issued details on Friday of its last-ditch rescue attempt with the closure of 45 stores through a company voluntary arrangement (CVA). The closures could be followed by another 50 over two years.

A CVA allows troubled retailers to close or change the rental terms on unprofitable stores.

JJB, which employs more than 6,000 people, and its adviser, KPMG, have begun negotiations with landlords to get approval for the plan.

Although it's the retailer's second CVA in two years many landlords are thought to be minded to support JJB thanks to its good communication with them over the past year and its obvious dire circumstances. Another possible plus is its chief executive, Keith Jones, who is well respected among the landlords.

Landlords have been critical of retailers that they believe have "unnecessarily" asked for CVAs, some of which have failed due to lack of landlord support, including footwear chain Stylo in 2009.

JJB needs to win the support of 75 per cent of its unsecured creditors and 50 per cent of its shareholders for the CVA to avoid administration. Some experts suggest a pre-packaged administration could be on the cards if the CVA fails, and that is when JD Sports is likely to circle the carcass.

The CVA details, including slashing JJB's rent and moving to monthly rather than quarterly payments, as well as the closures, will be sent to creditors and shareholders at the end of the month. It has said just 150 stores of its 245-shop estate are "core to its future".

JJB has confirmed plans to raise 31.5m with the support of its two biggest shareholders, Harris Associates and Crystal Amber, and of the Bill & Melinda Gates Foundation. This fundraising will be followed by another, necessary to keep the company alive past April.

Elsewhere in retail, Tom Knight, the former JJB boss, is in the running to take the reins from Neil Gillis at outdoor clothing firm Blacks Leisure this week, while DIY chain Focus is close to selling five leases to a supermarket either Asda or Tesco as it raises money to fund a new store design.

from the other side:....

'I am still in as in my opinion JJB share price is gift at the moment. I have around 200,000 shares. My only worry is management, as it seems they are incompetent. Just imagine, over 6000 employees for 250 shops, they are too many,

Company has turnover of over 400 million, making gross profit of over 160 million, and still posting operating losses because of overheads, is unacceptable. In my opinion, a company that is making gross profit of around 160 million from 250 outlet (Plus on-line sale) a year should post operating profit rather than loss. I think for JJB to survive, they have to work in reducing the overhead to no more than 20 percent of turnover, ideally 15 percent.



One could find this anomaly easily by Looking at JJB half-yearly report in their RNS published on 28 Sept 2010: Here are the figures:

Revenue = 184 million (in 6 months from Feb to July)

Gross Profit = 77.6 million (6 months from Feb to July, excludes Christmas time sale]

Expenses = 102.2 million [for 6 months, consisting of local expenses = 89.5 million, Central cost = 10.6 million, Exceptional Items = 2.1 million]

Operating loss = 24.6 million (102.2 million 77.6 million ... that is for 6 months)

I think their expenses (102.2 million for 6 months ... or ... around 205 million for a year) are too much and they should think to reduce that rather than anything else so that their gross profit should cover that expenses and still leave something to show as operating profit.'

fantastic news from the telegraph tonight - feeling real good about me recent buys & top ups here, could be a mega kerrrchinnnggggggggg pretty soon (for me anyhow! & anyone else who has bought recently! he who dares .... lol) and not too late for more --- cricial key support received - this would have been a deal breaker had the landlords not been agreeable - yeeeeeeeeeeeeeeeeehaaaaaaaaaaaaaaaaaaaaaaaaa!!

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8334822/JJB-Sports-gains-support-for-CVA-proposal.html

JJB Sports gains support for CVA proposal
Leading property companies are warming towards JJB's proposals to close loss-making shops through a company voluntary arrangement (CVA), despite an initial backlash.

JJB Sports gains support for CVA proposal Photo: AFPBy Graham Ruddick 7:50PM GMT 18 Feb 2011
Comment
The sports retailer has held a series of meetings with its landlords ahead of the full publication of its plans in the next two weeks, and is understood to have received favourable feedback.

According to industry sources, landlords which include Land Securities, British Land and Hammerson are frustrated at the proposals but consider the CVA the best of a bad choice.

JJB claims it could collapse into administration if the CVA is rejected, and landlords fear such proceedings would lead to their retail units being tied up for a long period as the company is unwound.

However, approval of the CVA could provoke fury among rival retailers, many of whom have threatened to try to renegotiate rents.

It is the second time in two years JJB has used a CVA to seek to withdraw from leases on loss-making shops. The company is proposing to close 45 "significantly underperforming" stores over the next year, as well as putting a further 50 units "under review". At least 75pc of unsecured creditors must support the CVA for it to go ahead.


easy dough imo dudes - remember ray not too long ago...

in fact should see some northerly moves next week - more news before end of february!!

'Full details of the CVA proposal, which needs the backing of the holders of more than 50 per cent of shares and 75 per cent of creditors, will be published in late February.'


First phase of JJB rescue plan approved by shareholders

February 18, 2011

JJB Sports secured its short term future as a business today after shareholders voted to approve plans for a 31.5m share offer.

Despite ongoing takeover talks with JD Sports Fashion, JJB held the emergency fund-raising after struggling sales forced it to warn investors it would not be able to make repayments on a 25m loan.

A company statement read: "The board is pleased to announce that each of the resolutions proposed at the general teeting held today to approve the proposed firm placing and placing and ien ofer of, in aggregate, 630,000,000 nw odinary sares and other related matters was duly passed without amendment by the required majority on a vote conducted by way of a poll."

The company, which currently operates 250 stores, is now able to finalise its long-term restructuring and refinancing plans.

They include a company voluntary arrangement which will allow it to terminate leases and shut 45 under-performing stores and negotiate reduced rents on other branches.

Full details of the CVA proposal, which needs the backing of the holders of more than 50 per cent of shares and 75 per cent of creditors, will be published in late February.

i would not wanna be outta jjb right now!! only after i've made me dough here - lol!

What the hells going on here.

There wasn't a consolidation was there?

Sp seems to have opened around 30p

So,what exactly is the story here??

from proactive investors....

Shares in JJB Sports (LON:JJB) shot up more than 800 per cent in a frenetic early start to trade after investors agreed to back a £31.5 million share sale that offers the company a financial lifeline.

The stock was mainly placed with City investors including existing shareholders Harris Associates and the Crystal Amber fund at 5 pence a share. Bizarrely, Bill Gates is also an investor with more than 5 per cent of the beleaguered retailer.

The much needed cash injection staves off the immediate prospect of administration, which could have signalled the end for this fixture of the high street.

However, JJB will need further investor and creditor support for a second company voluntary arrangement (CVA) in as many years if it is to avoid going into administration.

The second CVA proposes the closure of up to 95 JJB stores and the retention of a core group of 150 stores.

The firm, which employs about 6,300 staff, is also in takeover talks with thriving rival JD Sports Fashion.

In early trade the shares were changing hands at 33.5 pence each, up 29.69 pence.

Consolidation!!!!!!!!

Wish they would get there facts right.

P

From the other side on the share consolidation it doesnt look good.

Yes, you had 100 shares but now only 10
BUT, and the big BUT is for you to have stood still the share
should show up 1000% today not 750% !!!

You are down 25% overnight and falling

A Russian Roulette type share,you might say.!

what a mare! lol

effectively about 17% ish down today unless my maths wrong - so many rumours flying around right now - from the iis wanting to privatise on the cheap?! (doubt it imo - WHY?), t/o talk continues, offer to landlords of share of future profits if accept cva, landlords apparently ok with cva as unlikely to have clients to fill shops for an age (look at your local shopping centres and the amount of closed shops), sd want jjb as do jd for their internet offering et cetera!! personally now on a little loss here thanks to today - but i think that maybe due to all the uncertainty and other issues similar around the 10/1 consolidation - i am gonna sit tight - i expect to exit 10 to 15p i hope by end april or sooner - basically i am in 100% to the end - s h one t or bust or as chessplayer aptly describes as 'Russian Roulette' - it certainly is but fun! lol! and gl to any in here or considering jjb - i am quietly confident now landlords (imo) are on board, the 5 iis, a restructered jjb i.e. crap loss making shops dumped, jd keen because of sp, sp considering options due to competition rules et cetera! lol

lol lol lol - boy jjb are making it hard to earn an honest crust here guv! lol

well i topped up today - what a bargain - yep fully aware of the risk but do not expect the bank to not support - also understand why people might not want to buy right now - i expect an rns tomorrow and north movement quick!! the sells today were mainly auto which is most likely the residue of the pru sell off who want out for whatever reason - heard rumour that could not reach agreement with other 5 iis - but hey ho!

tomorrow one of the big days - kerrrrrrrrrchinnnnnnnnnnnnnnngggggggggggggggggggggggggggggggg!!!!

there is more than one key paragraph in the cva proposal - but the bank prior to day it is rumoured already agree on this:

'The directors of each of JJB and Blane believe that the CVA proposals and the CVA process will facilitate a better outcome for creditors than would occur if JJB and/or Blane were placed into administration or liquidation and therefore that the CVA proposals and the CVA process are in the best
interests of the Company and its shareholders.'

only one landlord known to oppose - so what - affects only 3 shops - once approved officially that landlord may regret that me thinks!

gla still in - remember those sells today were mainly auto - which is why i smapped me up more at a bargain price!!! lol

btw - ever get the feeling jjb have painted a worse picture than it actually is! :-;

yeeeeeeeeeeeeeeeeeeehaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa - glad to have topped up yesterday
kerrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrchinnnnnnnnnnnnnnnnnnnnngggggggggggggggggggggggg


more to come here imo!

http://www.investegate.co.uk/Article.aspx?id=201102251255288923B


JJB Sports PLC
Update re Proposed Company Voluntary Arrangements
RNS Number : 8923B
JJB Sports PLC
25 February 2011







25 February 2011



JJB Sports plc



Update re Proposed Company Voluntary Arrangements



Further to the announcement by JJB Sports plc ("JJB" or the "Company") on 11 February 2011 of the key details of the proposed restructuring of its property portfolio through the CVA proposals, the Company is pleased to confirm that it has delivered a final draft of its revised business plan to Bank of Scotland ("BoS"). The Company will announce further details of the revised business plan in due course following completion of the independent review of the plan and its funding requirements by advisers.



Full details of the CVA proposals (including details of creditor and shareholder meetings) will be set out in the CVA proposal document that the Company intends to despatch to unsecured creditors and shareholders by no later than 4 March 2011. The Company has maintained its open and constructive dialogue with key creditors. To date, JJB has actively engaged with landlords accounting for 47% of the Company's annual rental payments regarding the future shape of the Group's property portfolio.



Commenting on the restructuring, Mike McTighe, JJB Chairman said: "We are delighted to have achieved two further milestones this week - successful completion of the first capital raising and delivery of our revised business plan to BoS. With publication of our CVA document scheduled for next week, the Board and management team continue to work extremely hard to rebuild JJB. With the continued support of all the Company's stakeholders, we remain confident that we can deliver a successful turnaround."





Enquiries:



JJB 01942 221 400

Mike McTighe

Keith Jones



Maitland 020 7379 5151

i wouldnt wanna be outta jjb this weekend - LOL!!!!!

gibby
Yes LOL they are now @ 2.2p in old money.

driver lol :-)) that's why they are so cheap now

it wont be this sp for long!! lol

i will leave you to interpret that :-0