CVAs

CVAs

Company Voluntary Arrangements are an important vehicle used to give struggling businesses a second chance. All too often the focus is entirely on reducing debts but we believe that you also need to understand the root cause of the problems and create both a restructuring plan and a more strategic plan to ensure that the business is fit for the future.

It is a sad fact that 70% of CVA’s fail within two years of approval. The reason is simple: the focus is often on regulatory compliance and not on the actions and resources required to turn around the business for good.

Support to insolvency practitioners

We are experienced in working with Insolvency Practitioners who act as Supervisors in a CVA. We bring our specialist retail skills to help create a realistic CVA proposal for creditors to review. We can also provide specific services such as inventory valuations or disposing of the stock in stores identified for closure.

Support to company directors

We also work closely with the Directors, and we can provide much needed additional resource whilst they are dealing with the extra workload created by the CVA requirements. Our support can be in the form of general advice used to create a compelling plan which creditors will vote for. Alternatively, we can take on operational roles to run groups of stores. If stores are identified for closure, we will make sure that you don’t need to concern yourself with them. We will run them and maximise the value from stock in those stores to provide a much needed short-term cash injection.

We can become involved at any stage of the CVA process; working with us early on is ideal, but we can also take on identified actions once your proposal is voted for and becomes binding.

Support to insolvency practitioners

Support to company directors

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