After many in-depth discussions, struggling sportswear retailer JJB has been given breathing space by its lenders after they pushed back the 14th of December deadline on a bridging loan given by Icelandic bank Kaupthing.
In a change of plan, JJB will now pay £20 million pro rata across all three of its lenders, Kaupthing, HBOS and Barclays. The group has a £60 million facility with Barclays and a £15 million loan facility with HBOS.
JJB has been in serious debt trouble this year, with net debt standing at £57.6 million at the end of July. The group also announced that there has been an 8.9% fall in like-for-like retail sales from the end of July to the beginning of December. Shares in JJB plummeted in September after the retailer disclosed that HBOS had accused it of breaching its banking covenants.
Whilst admitting that its outlook remained uncertain, JJB pledged that trading was strong since the start of its sale two weeks ago. Non-executive chairman, Roger Lane-Smith stated: “During the period we have made good progress on a number of fronts in the face of the difficult trading conditions that have afflicted the entire high street. The economic outlook is challenging but I am confident that the work we are doing will put JJB in the best possible shape to trade through it.”
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