Throughout the length and breadth of the UK, chains of retailers have been closing their doors and making swathes of redundancies as part of these CVAs, many of which fail to ever result in the business recovering.
In fact, more than half of the retail CVAs out in place since this procedure was introduced in the mid 1980s have failed to lead to the retailer escaping eventual collapse. Some argue that the fact that CVAs allow the existing (and often flawed) management team to remain in place is the problem.
So why are they still such a popular option for struggling retailers and does buying a business from a CVA present opportunities?
A Company Voluntary Arrangement (CVA) is a legally binding agreement struck with a company’s creditors to allow it to pay back all or some of its debts over an agreed period of time, usually 3 - 5 years. A company can’t just decide to enter into a CVA - it must be approved by 75 per cent (by value) of voting creditors.
Offering for sale the business and assets of Project Pinnacle as a going concern, an independent chain of builders and timber merchants selling to trade professionals and the general public.
The company provides a comprehensive range of multimedia solutions for the wire, cable, tube, pipe and fasteners industries comprising print magazines, digital magazines, websites, digital platforms and social media benefitting from digital advertisi...
An established Irish based engineering business, providing supply, fabrication and erection structural steel solutions to customers across the island of Ireland and Great Britain.
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.