The end of the line for JJB?

It really does look like the end for struggling sports retailer JJB Sports. The papers are reporting that JJB plans to close up to 95 stores in a last-ditch attempt to restructure its lossmaking business and convince lenders and shareholders to continue to provide financial support.

JJB is trying to pull-off a second “creditors voluntary arrangement”. In essence this involves JJB trying to get the agreement of 75% of its creditors to accept a significantly smaller payment than the amount owed. The big creditors are the shop landlords who might be unlikely to let JJB off the hook this time. JJB is reported to be running out of cash - very quickly. It may survive for a few more weeks, but needs an emergency fund-raising (again) to stay afloat whilst it tries to restructure the business and stem the losses.

This is a classic case study for business students for years to come - I fear.