Northern-based Hi-Fi specialist, VBA Limited, has been bought out of administration by its founders, Neil Ball and Simon Clarke, in a pre-pack administration deal. At its peak in 2008 the firm employed 60 people and had a turnover of £55m. However, according to the statement of affairs drawn up by the administrators, Begbies Traynor, the firm’s sales had slipped to £11m with debts of £4.8m.
Administrators agreed to a "pre-pack" sale of the business and assets to Elitemark, the company run by Ball and Clarke, for £150,000 - £50,000 of which was paid upfront. Joint administrators said that a pre-packaged sale "ensured the best return to creditors as it allowed for continued trading which would not have been possible in any other scenario". It was reported that VBA failed to gain approval from enough of its creditors to complete a Company Voluntary Arrangement. We don’t know why the CVA was not approved, and who advised them at this stage, but at KSA if the business is viable then we are generally able to get a very high percentage approved. This usually means taking time to convince creditors that this is the best way forward.