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Debenhams' CVA To Be Challenged in Court

Written by Robert Moore Marketing Manager 2 September 2019

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Debenhams' CVA To Be Challenged in Court

Update:

Debenhams has lined up Deloitte as administrators in the event that their CVA is successfully challenged by the landlord Combined Property Control (CPC), which owns the freehold to six Debenhams stores, including Southampton, Harrogate and Folkestone.  The landlord is argueing that the CVA was not run properly and should be overturned.  Mike Ashley earlier withdrew his own challenge to the CVA but has said that he will support the CPC's action.  In fact, Mike Ashley is funding the challenge. 

 

Debenhams CVA is approved by creditors

Following the sale of Debenhams to its lenders via a pre pack administration the lenders will use a CVA to close down a number of its stores and negotiating rents on the remaining ones. 

At the moment Debenhams has 166 stores across the UK, employing thousands of people in its branches, head office and warehouses.  They have not given any indication as to which stores will be shut.

CVAs have been deployed repeatedly this year as a vicious downturn grips the high street. Any attempts by Debenhams to shed stores may be complicated by its corporate structure. The retailer’s property leases are held under several companies, which could force it to undertake more than one CVA at the same time.

Debenhams has announced that it will close 22 stores early next year, putting 1,200 jobs at risk.

Here is the full list:

  • Altrincham

  • Ashford

  • Birmingham Fort

  • Canterbury

  • Chatham

  • Eastbourne

  • Folkestone

  • Great Yarmouth

  • Guildford

  • Kirkcaldy

  • Orpington

  • Slough

  • Southport

  • Southsea

  • Staines

  • Stockton

  • Walton

  • Wandsworth

  • Welwyn Garden City

  • Wimbledon

  • Witney

  • Wolverhampton

If you are worried about your job if you work at these locations please read our help for employee pages

Categories: What is a CVA or Company voluntary arrangement?, Redundant Employee?

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