With high street sales expected to fall in the coming months retailers are unsurprisingly nervous, especially following a poor Christmas trading period. Recently Clinton Cards and Mothercare have issued profits warnings and HMV and Next have reported lower sales.
However, all is not lost for multiple outlet retailers as some stores maybe performing well and some underperforming. So, if you need to close down underperforming stores quickly for the good of the whole group this can still be done using a well crafted CVA.
Using a CVA to close underperforming stores and reduce employment and overhead costs can be a powerful rescue tool for small and medium sized businesses as well. Please see our example where KSA restructured a small retailer and led the closure of 5 furniture and gift stores in London. https://www.companyrescue.co.uk/case-studies/cva-case-studies/case-study-cva-for-furniture-designer-retailer
For more details on how we can help struggling retailers please refer to our page for struggling retailers We have used the CVA mechanism very successfully for a number of retail clients and one of them (a mid sized fashion chain with high street, mall and factory outlets) will be more than happy to talk to any prospective client.