The company, which operates a chain of 6 Asian inspired healthy food outlets in London, first contacted KSA Group in December 2020 at the height of the Covid pandemic. In addition to the 6 outlets the company operated a separate central production kitchen with a capacity to serve up to 20 outlets as the company grew.
Forced closure through government lockdown restrictions prevented the company from trading and the lack of sales revenue incurred significant creditor liabilities including premises rent arrears.
Having undertaken a detailed assessment of the business KSA worked with the director and the company’s creditors to build a proposal for a Company Voluntary Arrangement (CVA) to repay creditors as much as the company could afford over a 5-year period. Combined with protracted landlord negotiations the company was able to continue trading with carefully negotiated turnover based rent for an agreed period before rent reverted to pre-covid levels. A total of c£
The CVA proposal was approved by creditors in August 2021 with the secondary preferential creditor (HMRC) being repaid 100p in the £ and remaining unsecured creditors receiving a minimum of 32p in the £ over a 5 year period. A total of c£310,000 (minimum) will be repaid to creditors over 5 years.
The approval of the CVA by creditors has saved the company from entering either a liquidation or administration process which would have resulted in a far smaller return for creditors.
16 jobs have been saved and with the support of the company’s creditors the company should, in a short period of time, return to pre-covid trading levels and continue to grow.