27 June 2024
White Rabbit Fund has acquired full control of Grab and Go brand Island Poke, in the form of a pre-pack administration.
White Rabbit has backed the brand since 2016.
The pre-pack sale safeguards 104 hospitality jobs and supplier operations, according to reports.
Read more via Restaurant Online.
28 May 2024
Grab-and-go brand, Island Poke is preparing for a company voluntary arrangement (CVA), in efforts to restructure its business.
Two partners of Begbies Traynor were appointed to support the restructuring. They submitted a CVA application to the court on Wednesday.
Island Poke, the heath food chain, is coming up to almost 10 years of business. Initially it opened as a street food stall but later in 2015 its first brick and mortar site was opened, this being in Soho. Now the group has 17 UK sites to its name, along with 10 French sites, run under a franchise.
A spokesperson for the brand explained how the core of the business is profitable, but the debt left from COVID was a key reason for its struggles.
‘’The CVA proposal will strengthen the company and allow us to focus on providing fresh, healthy poke to our customers.’’
This is not the first food chain to look into the CVA route. It has been used by many, as a way to determine lease obligations, perhaps propose a deal to cut rents, but ultimately improve the company’s cash flow. It typically is used as a turnaround plan, to bring hope for struggling businesses of a rescue.
Read more on CVAs including the process here. At Company Rescue we are experts in this mechanism.
A Company Voluntary Arrangement CVA or a Formal Time to Pay Agreement
The main advantage of a CVA over TTP is that you can write off a proportion of the debt whereas a TTP you have to pay all of the debt.
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Advice If You Are A Creditor Of A Company Proposing A CVA
If you are a creditor or supplier of a company in a CVA or proposing one then read our guide.
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Companies in CVA – What Happens To Their Credit Rating?
When a company goes into a CVA its credit rating goes from whatever it was to a "no rating" or Zero. This can be fixed by using a CVA with a Hive.
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Company Voluntary Arrangement and CVA Voting
If a creditors meeting is to be held then the proposal is accepted if 75 percent by value vote for it.
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