SPORTS retailer JJB may have started a new trend by using a Company Voluntary Arrangement (CVA) to renegotiate its agreement with landlords, according to Liverpool law firm DWF.

The firm says it is seeing a rising number of tenants looking to follow JJB’s example, but it warns that landlords asked to vote on a proposal should ensure they understand the implications for their business.

Andrew Nichol, real estate partner at DWF in Liverpool, said the firm had advised a number of landlords and banks on various CVA proposals.

He said: “CVAs have been around for almost 25 years but have been used rarely, as it is often difficult to get sufficient creditor support.

“However, they may become more common as everyone gets used to operating within a changed economic environment.

“As a result of the JJB CVA, there is a real possibility that the CVA process will become a blueprint for many struggling retailers seeking to retain control of the business.”

Mr Nichol is advising landlords to seek advice as quickly as possible to reach a balanced decision on whether to support the CVA, or risk the company failing immediately.