Blacks Leisure chooses company voluntary arrangement solution (CVA)

27 October 2009

Outdoor and leisure clothing retailer Blacks Leisure, (Blacks, Millets and Free Spirit) looks likely to propose a CVA to cut costs, close unwanted stores, make 400 redundancies and seek support of its creditors to survive. 


Having put one division into pre-pack administration last week, it is now using the more morally acceptable CVA approach to restructure the main business. 


I guess the penny is now starting to drop about company voluntary arrangements and how powerful they are to restructure failing retailers and other viable struggling companies 
This year JJB Sports plc, Stylo plc and Focus DIY plc have all put forward CVA's. Stylo's aggressive plan was rejected however. 


The article link below to the Sunday Times is worth a quick read. The author says erroneously that CVAs are used "used mostly by retailers that enables a company to agree with its creditors how its debts should be paid and to close underperforming stores". 


Any viable company can use a CVA, we are currently working on CVAs for recruitment , software companies, marketing companies, accountancy companies, engineering companies, retail companies, manufacturing companies, e-commerce companies, commercial cleaning companies, packaging companies, window companies etc. 
http://www.thesundaytimes.co.uk/sto/business/article186007.ece