The broadcaster which recently entered a CVA has fallen into administration. Due to significant fall in sales, the firm in charge of Bid TV and Price Drop has appointed joint administrators, Will Wright and Allan Graham of KPMG to assist with the business.
The TV shopping channel has ceased trading, both on TV and online, resulting in the loss of 229 jobs.
Will Wright commented, “It is really disappointing, given the hard efforts of the company and the support of the majority of its creditors, that a satisfactory conclusion to the restructuring could not be reached. Despite the recent approval of a Company Voluntary Arrangement agreement with creditors, a significant and unexpected fall in sales over the course of the last month meant that the company was simply unable to continue to trade.”
Unfortunately, if the company is unable to continue trading or cannot reach a level of profits, a CVA won’t work as the company is no longer viable. However, if a business is reached early enough, a CVA can be a powerful option to rescue a business by restructuring and re-organising debt.