We have seen recently a spate of large businesses such as Jamie's Italian, Byron Burgers, Select Retail, Carpetright, Mothercare and now even House of Fraser and Arcadia using the company voluntary arrangement (CVA) process to restructure.
Large retailers like this particular method as it allows them to quickly close down loss-making stores. The CVA is an insolvency mechanism that aims to rescue companies and, where appropriate, is a more cost-effective method of restructuring than administration. Obviously, it depends on the circumstances but a CVA can be used for a company with only £30k of unsecured creditors.
We have used CVAs to rescue not just retailers but
- Building companies
- Recruitment agencies
- Software developers
- Travel companies
- Just about any business!
If your business is struggling and thinks that a CVA might be the answer then call us on 0800 9700539 for a no obligation chat.