The Tottenham Road retailer, Micro Anvika, has managed to agree a deal with its creditors over a debt of £2.7m. Micro Anvika proposed a company voluntary arrangement which was accepted by 84% of the creditors. However, in order to survive the company has had to close half its stores and make 60% of the staff redundant. Last year the company's credit insurance was removed and this precipitated its problems. The company turned over £30m last year but that was down from £43m 2 years previously. The company accounts show that it made a loss last year of £993,000.
Advisors Re10, which Micro Anvika appointed last December to explore whether it could turn around operations, held a meeting of creditors on 26 April. The proposal was that the creditors will receive 32 pence in the pound over 5 years.
Micro Anvika will operate out of just two premises in London's Tottenham Court Road and one in Newcastle. The online business will remain.Staff have taken a salary cut and a share scheme is being finalised. The directors Atul Patel and Ramesh Gohill are now drawing a salary of £20,000 a year between them, said Re10. In addition if the business makes more money than expected then the creditors will receive moreThis does look like a strong CVA. Radical change is being proposed and the creditors might get a bonus if all goes well. Many CVAs do not go far enough or cut deep enough.