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.


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

Hobbycraft To Launch CVA to Close Stores And Negotiate With Landlords

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

Update 19th MayThe 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 2026TOFS 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

Poundland Likely To Close 100 Shops

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

Update 13th JunePoundland has been sold for 1Euro.  It has been announced that investment firm and former Laura Ashley owners Gordon Brothers have taken the chain on.  The company will go into a court approved restructuring process as part of the deal.  This will mean that all class of creditors, secured and unsecured, will be subject to the courts decisions on how much of the debts they will get repaid.  This restructuring is part of the Section 26A of the Companies Act.Part 26A offers the ability to "cram-down" the plan, meaning the plan can be approved even if a dissenting class of creditors or members objects, provided that certain conditions are met (such as demonstrating that dissenting members would not be worse off under the plan than they would be in an alternative scenario). A restructuring plan under the Act is complex and expensive so is really only suitable for much larger businesses.Sky News has reported that Polish-based Pepco Group, which has controlled Poundland since 2016, has recruited AlixPartners, the retail experts, to handle a sales dip that has prompted worries about company's future.  The company operates over 850 sites and employs 18,000 staffLike for like sales were down 7.3% over the crucial Christmas period.AlixPartners is understood to have been formally engaged last week, with options including a company voluntary arrangement (CVA) or restructuring plan said to have been discussed by a range of advisers on a highly preliminary basis.In its trading statement, Pepco said that Poundland had suffered "a more difficult sales environment and consumer backdrop in the UK, alongside margin pressure and an increasingly higher operating cost environment"."We expect that the toughest comparative quarter for Poundland is now behind us - the same quarter last year represented a period prior to the changes made within our clothing and GM [general merchandise] ranges - and therefore, we expect the negative sales performance for Poundland to moderate as we move through the year."​The company is said to be looking at multiple ways to improve its cash position by selling more goods over £1 to expand its range of products.The mere fact that it has been leaked that a company voluntary arrangement (CVA) has been discussed is pertinent.  The reason is because talk of a CVA can be a very useful tool to put pressure on landlords to consider rent reductions.  Under a CVA the retailer can exit leases, at no cost, leaving landlords out of pocket.  To understand a bit more about this please read our CVA and retailers article.Of course it is also likely that the company will come under extra pressure from the increases in minimum wage, NI increases and the loss of 75% business rates relief.Since the cost of living crisis there has been strong competition from other discounters like B&M and Poundstretcher.  Poundstretcher themselves used a CVA to reduce costs. They exited in 2022 paying just 12p in the £1 to its unsecured creditorsIf such a big retailer were to fail this would send shockwaves through the sector and would be a political headache for the Labour Government.​​

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Poundland Likely To Close 100 Shops
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Superdry Creditors Vote in Favour of Restructuring Plan

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

Update: 11 June 202499% of Superdry creditors have voted in favour of the proposed restructuring plans to rescue the fashion retailer.The proposed plan includes a delisting from the stock market, achieving rent reductions at 39 of its 94 UK stores and an equity raise underwritten by founder, Julian Dunkerton.This is a restructuring plan under part 26 of the Companies Act Update: 15 April 2024It hits the news today that landlords of Superdry are considering a restructuring deal that would result in steep rent cuts at a large proportion of its 94 British shops. The scale of the rent cuts would be dependent on the financial performance of each site.According to City sources, the fashion retailer is not planning on any permanent closures, but landlords would have the option to terminate any leases if they were not satisfied with the terms of the deal.Superdry has been facing red for some time. Most recently there were talks with founder, Julian Dunkerton regarding a takeover, but such talks were then aborted.Sky News share more. Update : 29 January 2024In line with other retailers Superdry has been finding trading difficult due to the cost of living crisis.  It has also been cutting back its store count. The clothing brand has 104 stores in the UK and started closing some back in July 2023.  The company also announced that it was looking at costs savings of some £40m.  This is an increase from the £35m they announced recently.  There are now rumours circulating that the company is looking at a Company Voluntary Arrangement (CVA) as a way of cutting costs.The CVA is a powerful rescue tool that is particularly favoured by retailers due to is ability to allow companies to vacate properties and determine their lease obligations.  The cost of high rent shops on long leases can be a heavy burden on retailers.The following case law has been used for some years now to terminate leases with no cash cost to the company.Re: Doorbar v Alltime Securities Ltd (1995) BCC 1149 stated that landlords can be bound by voluntary arrangements for future obligations under a lease.Re: Cancol Ltd (1995) BCC 1133 that the word ‘creditor’ in r1.17(1) IR 86 was wide enough to include a landlord with a right to future rent i.e. the ability to include future rent extends to CVAs as well as Individual Voluntary Arrangements.Furthermore, where the unliquidated or unascertained claim in a CVA involves future rents accruing to a landlord, the case of Re Park Air Services [1996] BCC 556) gives the CVA meeting   chairman some considerable guidance as to quantifying the claim at the meeting.Another reason that Superdry is finding itself in difficulty is that it rapidly expanded to try and become a global super brand.  No doubt much of this expanision was fueled by cheap debt and as many companies are now finding out when interest rates rise and customers pull back the going gets very tough.  As such the shares have lost almost 90% of their value in the last 12 monthsSky News has reported that PWC are the advisors that are looking at restructuring options.It is quite standard practice to put out stories about a possible CVA as this does prepare the ground for negotiations with landlords.  They will be asking the landlords for substantial rent reductions in order for them to survive.  If landlords refuse then they can usually get other suppliers and trade creditors to support a CVA proposal and out vote them.Landlords have tried to challenge CVAs in the courts on the grounds that they unfairly prejudice their position but have so far failed to succeed. 

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Superdry Creditors Vote in Favour of Restructuring Plan

CVA Case Law Created By A KSA Client – Thomas Vs Ken Thomas Ltd

in What is a CVA (Company Voluntary Arrangement)?

Thomas Vs Ken Thomas Ltd and the Court of Appeal upheld our clients position.  The case can be summarised as below: The Court of Appeal’s decision in Thomas v Ken Thomas Limited highlights a significant aspect of the landlord-tenant relationship concerning the appropriation of payments made by a tenant in arrears and where a CVA is proposed. Here’s a summary: Key Issue:The case dealt with whether a landlord can appropriate (allocate) a tenant’s payment towards rent for a period other than the one specified by the tenant. The court examined the implications of accepting payments from a tenant who has specified the payment to cover rent for a particular – in this case one month in advance - period. Facts:Ken Thomas Limited, was a medium sized loss making haulage contractor requiring a turnaround. It approached KSA to oversee a CVA led restructure. It leased over 1million square feet of logistics premises  from Mr. Thomas but fell into rent arrears and became insolvent. It proposed to enter into a Company Voluntary Arrangement (CVA).  During the CVA construction/ preparatory period, our KSA operations director, Iain Campbell agreed with the landlord that the tenant would pay future rent on the first day of each month for that month, whilst arrears were frozen. This was agreed in writing with the company and the landlord. The company offered to pay the monthly rent for December and subsequently for January, specifying the allocation of these payments. Mr. Thomas, however, unilaterally applied these payments to previous arrears and claimed the company was in breach of the lease and sought forfeiture action in the Norwich County Court, which was granted. Decision:The Appeal Court ruled in favour of Ken Thomas Limited, finding that Mr. Thomas had waived his right to forfeit the lease by accepting payments specified for December and January rent, thereby binding himself to the tenant’s appropriation of the rent funds. The court emphasised that a landlord must refuse or return the payment if they disagree with the appropriation specified by the tenant, to avoid waiving their right to forfeit the lease for non-payment.Legal Principle:The case underscores the principle of appropriation in the landlord-tenant context, stating that a tenant can decide how their payments are to be allocated if specified. Absent such specification, the landlord could choose the allocation. Implications:This judgment highlights the importance for landlords to understand the implications of accepting payments from tenants in arrears. It illustrates the need for landlords to be clear about their commercial objectives and the potential consequences of accepting payment against the backdrop of a breach of covenant. The case also led to the common practice of including ‘no waiver’ clauses in leases to protect landlords from inadvertently waiving their rights to remedies for breaches by accepting rent payments. Looking at this case some 15 years later we remember how difficult it was but the company had its CVA accepted by creditors with KSA leading the restructuring project. Our more recent cases are highlighting that many landlords premises are “overrented” post Covid and may need to either be exited using the CVA or have the rent varied by a well written CVA.  We are currently working with haulage and logistics companies recruitment companies, software/tech companies, manufacturing companies and retailers to assist them to reduce fixed costs like rent. If you are a tenant of a commercial premises and your business  needs to restructure, or is considering exiting the lease to support cashflow then you need expert advice. It could be a CVA is the appropriate tool to use. KSA Group helped create the above case law  so you can be sure we know a thing or two about CVAs and properties.

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CVA Case Law Created By A KSA Client – Thomas Vs Ken Thomas Ltd

Company Insolvency in Scotland

in Directors Duties in Insolvency and their Implications Research and Statistics What is a CVA (Company Voluntary Arrangement)?

Is there a genuine company rescue culture in Scotland? There is only one company driving the rescue culture in Scotland, and you have found it!Our firm RMT KSA, who run this website, are responsible for a significant proportion of CVA led rescue work in Scotland.If you run an insolvent or struggling Scottish company the chance of rescue is low. Amazingly, less than 1% of insolvent companies are rescued by a company voluntary arrangement or CVA each year!  This is compared to England and Wales, where proportionally, the CVA is used 4 times as often.So always ask your advisors these questions - What about a CVA - would that work? What is the comparison between CVA and liquidation? What is the comparison between CVA and administration?

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Company Insolvency in Scotland
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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 320+ CVA appointments (to September 2025) 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 helpsMaintains 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 saleWhy 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 RMTWe 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)