What is a CVA (Company Voluntary Arrangement)?

A company voluntary arrangement or CVA is a powerful tool that was introduced in 1986. The Government wanted to see more viable companies rescued and continue to trade.

Many insolvency firms ignore this option preferring the control and the larger fees of administration It requires creativity, determination and often hard work to drive a CVA rescue through.


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The Ultimate Company Voluntary Arrangement (CVA) Frequently Asked Questions Guide

in What is a CVA (Company Voluntary Arrangement)?

Reviewed by Chris Ferguson, Licensed Insolvency Practitioner and Director of RMT Recovery and Insolvency 6th October 2026   A Company Voluntary Arrangement (CVA) can help a viable company deal with debts it cannot currently afford while continuing to trade. For directors, the questions quickly become practical: This guide answers questions raised in a discussion with our turnaround team. It covers preparing a CVA, managing the relationships the business depends on, and what happens once an arrangement is approved. The answer […]

These questions and answers will give more detailed background to the CVA technique. If you have any further general or specific questions email us.

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The Ultimate Company Voluntary Arrangement (CVA) Frequently Asked Questions Guide

Franca Manca’s CVA Approved

in A guide for redundant employees in administration or insolvency situations What is a CVA (Company Voluntary Arrangement)?

According to Propel, the hospitality newsletter, Franco Manca has secured creditor approval for its Company Voluntary Arrangement, allowing the pizza chain to push ahead with a restructuring plan aimed at stabilising the business. The CVA was backed by more than 90% of voting creditors by value, giving the Fulham Shore-owned brand the approval needed to restructure its leasehold estate and focus investment on its stronger-performing restaurants. As part of the arrangement, 16 of Franco Manca’s roughly 70 sites will close. The affected locations include Battersea, Bishop’s Stortford, Brixton, Broadway Market, Bromley, Cheltenham, Chiswick, Didsbury, Glasgow, Hove, Kilburn, Lincoln, New Oxford Street, Plymouth, Stoke Newington and Tottenham Court Road. Fulham Shore said the CVA will enable Franco Manca to invest in its retained estate and continue developing the brand as a leading Neapolitan pizza operator in the UK. Marcel Khan, chief executive of Fulham Shore, said the support from creditors would help put the business “back on a firm footing” and allow the company to strengthen its customer offer and performance. The restructuring comes amid continued pressure on the casual dining sector, where rising costs, cautious consumer spending and weaker sites have made trading conditions difficult for many operators. Alvarez & Marsal advised on the process. Paul Berkovi, managing director at the firm, said the result reflected constructive engagement from creditors and provided Franco Manca with a platform to complete its financial restructuring and operational turnaround. The CVA follows wider restructuring activity at Fulham Shore. The Real Greek, also previously part of the group, recently saw 19 of its 28 sites acquired by Karali Group through a pre-pack administration. Franco Manca’s latest accounts show turnover rose to £70.1m for the year to 31 March 2024, up from £64.5m the previous year. However, headline EBITDA fell from £7.3m to £5.9m, while pre-tax losses increased significantly from £413,000 to £3.4m. The approval of the CVA gives Franco Manca breathing space to close loss-making locations, reduce pressure from creditors and focus on the parts of the business that remain viable.

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Franca Manca’s CVA Approved
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​Why choose RMT for your CVA (Company Voluntary Arrangement)

in What is a CVA (Company Voluntary Arrangement)?

When a viable business faces historic debt, cash-flow pressure or a critical one-off event, a carefully crafted CVA can be the right path. At RMT we don’t treat CVAs as a last resort — we treat them as a strong, discipline-driven rescue tool. Our credentials; Since 2009, the team formerly at KSA Group has completed 330+ CVA appointments (to June 2026) working alongside directors, lenders, landlords, HMRC, suppliers and employees. We have distributed £31m to unsecured creditors in CVA settlements (2009-2022) and repaid £17.9m to HMRC (for the most part when HMRC was unsecured).   We have more than 100 CVA-led rescues recorded on our CVA case studies page. Our CVA-specific case-studies span sectors: manufacturing, logistics, brewing, technology, retail, professional services  all with real companies, many still trading. What we do differently We assess viability first: only companies with a credible turnaround plan, committed management and a realistic restructure strategy proceed. (Because a CVA is not a quick fix.) We bring together creditor-negotiation expertise, turnaround planning, modelling of cash-flows, and the insolvency-practitioner structure needed to support the execution phase. Transparency matters: our case-studies include both successful CVAs and those that did not reach full term, so you’re seeing the real-world risks and outcomes. Broad sector experience means we understand diverse creditor types: HMRC, landlords, major suppliers, and industry-specific issues (e.g., lease burdens in retail, debtor risk in logistics, contract risk in manufacturing). You remain in control: directors stay responsible for running the business under the CVA, supported by our team. We handle the heavy-lifting around creditor liaison, monitoring and reporting. How a strong CVA helps Maintains trading while the restructure takes effect Protects viable business assets and jobs Reduces pressure on unsecured creditors because value is preserved rather than eroded by insolvency Enables directors and owners to work toward a sustainable future rather than winding-up or forced sale Why RMT should be your first call As the second-largest provider of CVAs in the UK, we handle more schemes than most medium-sized firms, and we achieve this while retaining a focus on quality and execution. We bring a track record that is hard to match in the SME-/mid-market space.  See this link that shows the numbers of cases done by KSA Group prior to their acquisition by RMT We will provide upfront, clear advice on whether a CVA is appropriate, or whether alternative routes (administration, liquidation, sale) might be better — you’ll never see us “push a CVA for the sake of a CVA.” We will give you access to real examples via our case-studies, and you can speak to directors who have “been there” and share their feedback. It is worth reading why CVAs sometimes get bad press coverage. What to do next Arrange a confidential, no-obligation discussion with our CVA team. We’ll take a high-level review of your trading position, debt profile, key contracts, stakeholder risks and timeline. We’ll advise whether a CVA is realistically viable or if another route is better, and what the next steps would be. If we proceed, we’ll provide a tailored proposal, stakeholder-map, estimated schedule, cost structure and your core obligations and expectations.   If you’re a director, business owner, lender or adviser looking for a genuine CVA specialist who does CVAs — not just talks about them — then RMT is here to help. With hundreds of lived-experience CVAs, sector breadth and a disciplined execution model, we’re ready when you’re ready. Call us on 0800 970 0539 or email advice@r-m-t.co.uk for an initial chat.

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​Why choose RMT for your CVA (Company Voluntary Arrangement)

Hobbycraft To Launch CVA to Close Stores And Negotiate With Landlords

in News Retail What is a CVA (Company Voluntary Arrangement)?

Update 19th May The CVA has been approved but all that has really happened is that the rents have been changed from quarterly in advance to monthly in arrears.  No wonder it was done ​quite quickly.   According to information obtained by Sky News, Modella Capital, a private investment business that specialises in acquiring struggling retailers, including WH Smith, will propose a company voluntary arrangement (CVA) at Hobbycraft as early as Wednesday. It has been reported that it will be FRP Advisory that will propose the CVA. People close to the plan stated that nine of its shops would be closed with the loss of around 100 jobs, and that 18 more would remain open only if negotiations with landlords over rent cuts work out. According to the individuals, 1,800 staff will be protected as an additional 97 stores will not be impacted by the CVA. Hobbycraft ‎is the latest in a series of High Street names to look at trying to reduce the size of their store portfolios amid rising pressures from online and discount rivals, increased employment costs and a deteriorating outlook for consumer confidence. Expensive High Street stores can be cut back provided that the lease allows for early termination.  If not the only way out is to surrender the lease that can be very expensive or use a company voluntary arrangement (CVA). A CVA allows the retailer to determine its lease obligations which can greatly help the company's cash flow.   For more information on why a CVA is a perfect mechanism for helping retailers, read our retailer rescue page   Why not read our case study where we rescued a multi-store retailer

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Hobbycraft To Launch CVA to Close Stores And Negotiate With Landlords

TOFS In Administration

in Retail What is a CVA (Company Voluntary Arrangement)?

TOFS has gone into administration with Interpath, being appointed administrator of the Burnley-based discount retailer   Update 19th January 2026 TOFS has filed a second intention to appoint administrators. This is its last chance to find a buyer for the business.  The moratorium lasts 10 days.  After the moratorium expires and no buyer is found then the company will go into administration and most likely most of the stores will close. The Original Factory Shop (TOFS), bought by Modella Capital just four weeks ago, is working with advisers at Interpath on a potential company voluntary arrangement, Sky News has reported. ​Modella is looking at a CVA in order to close underperforming businesses and impose rent reductions on others. Potential reorganisation suggestions are also believed to include a significant distribution centre. It is understood that the creditors will meet to vote on the proposal in Mid May.  It is hoping that 88 stores will get rent reductions. There will undoubtedly be some job losses among TOFS's employees, which was estimated to be around 1,800 at the time of last month's takeover, if any so-called "landlord-led" CVA caused store closures. What is a landlord led CVA? A CVA allows the company to terminate its liabilities under a lease provided that the majority of creditors by value (75%) agree. Landlords who do not have large arrears or rent owed to them are permitted in law to vote to the value of only 12 months rent.  In the majority of cases, landlords make up a small proportion of the total debts so they are routinely out voted by suppliers, HMRC etc. This explains why many retailers use this as a way of reducing rental costs as they can make up a high proportion of the companies costs but not their liabilities. So in other words they can get rid of loss making stores and not be on the hook for the 5 year lease.  By applying pressure on landlords, by threatening a CVA, they can get rent reductions on premises that might otherwise have to close. TOFS, which sells beauty brands such as L'Oreal, the sportswear label Adidas and DIY tools made by Black & Decker, has about 180 outlets. ​​We will keep this page updated once we know more.

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TOFS In Administration