AILING Wigan-based retailer JJB Sports faces a key vote on its future when it asks landlords and shareholders to approve its second rescue deal in as many years.

JJB is seeking approval for a controversial company voluntary arrangement (CVA) - an alternative to administration - in which it will seek to close 43 unprofitable stores, place a further 46 under review and move to monthly rental payments.

The group has put its faith in the deal after takeover talks with rival JD Sports ended.

JD abandoned its pursuit earlier this month after claiming JJB snubbed its requests for information, although JJB countered that the proposal was "highly conditional and lacking sufficient certainty".

Under the CVA proposals, its creditors are likely to receive between 25p and 29.2p in the pound they are owed, but this compares with just 1p if the company falls into administration, according to its adviser KPMG.

It recently said it had secured key support from shareholders, including the Bill and Melinda Gates Foundation, for its latest £65 million fundraising, while Bank of Scotland is also prepared to extend £25 million in working capital.

However, the support is conditional on the CVA vote, which requires backing from 75% of all creditors and 50% of external creditors, as well as 50% of its shareholders. JJB has offered landlords of stores that are shut a sweetener of up to £7.5 million in cash or shares in two years depending on its performance.

One of its biggest landlords, Peel Holdings, has already said it will back the plans, while Hammerson - which owns six stores that may be closed - has also given its support to the scheme.

JJB was saved from going into administration in 2009 after it secured its first CVA, when it ditched 140 stores and arranged to pay rent on a monthly basis at its 250 remaining open outlets for a year.

However, the firm’s battle for survival continued when weather disruption and challenging conditions dashed hopes of a trading revival. Pre-tax losses more than trebled to £68.5 million in 2010 and in the company’s crucial like-for-like sales fell by 15.7% in the group’s recent Christmas trading period.