JJB says Ј65m marks end of finance overhaul

The firm latest cash call already has the backing of major shareholders, including the Bill and Melinda Gates Foundation, but still needs to be approved by a shareholder meeting later this month.

Shares in JJB rose 3p to 31.5p as chairman Mike McTighe said the fundraising would mark the end of the company's financial restructuring process.

'Once complete, it will allow the company to press on with the next stage of implementing its revised business plan and allow management to focus solely on the turnaround of the group's retail business,' he said.

The details of the cash call come a fortnight after landlords and other creditors backed an emergency rescue plan that will see JJB close 43 unprofitable stores, place a further 46 under review and move to monthly rental payments.

More than 75% of JJB's creditors - the majority of which are landlords - and over 50% of shareholders approved the controversial company voluntary arrangement (CVA), which is an alternative to administration.

JJB, which currently has funds until the end of this month, has been boosted by a new £25m working capital facility with Bank of Scotland.

Wigan-based JJB's move to raise £65m from investors is the latest in a series of cash calls. It raised £31.5m from its five biggest shareholders in February, following a £100m fundraising about a year before.

Its proposed company voluntary arrangement (CVA) is also its second in as many years.

JD Sports last month abandoned plans to make a bid for JJB after claiming its rival refused to provide enough information.

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There are currently 2 broker(s) tracking this stock. The results are:

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UPDATED: 06/04/2011 07:55 pm

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UPDATED: 06/04/2011 07:50 pm

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