Sit Up TV’s creditors have “overwhelmingly” voted through the CVA which will enable the TV shopping firm to restructure its fixed cost base.
KPMG partner Will Wright, who acted as ‘supervisor’ of the CVA, said: “Today’s ‘yes’ vote gives Sit-Up Limited the green light to renegotiate its infrastructure supply contracts, rightsizing its fixed cost base and giving it a platform to trade on a more competitive basis.”
“Over 75% of creditors had to vote in favour of the CVA to pass the resolution. Today’s vote saw us secure significantly more than this, with 99% of all creditors voting in favour of the CVA.”
Creditors accepted 9p to 30p in the pound through the terms of today’s CVA.
Paul and Val Wright, the entrepreneurial couple who launched rival Ideal Shopping, are now set to invest £6m into Sit-up, which operates Price Drop TV and Bid TV.
CVAs have proved a controversial restructuring option in retail. Store groups including Blacks, Focus DIY and JJB all called in administrators despite going through a CVA process beforehand.
Sit-Up was acquired by Tnui Capital in December 2013. It broadcasts to more than 12 million homes, carrying more than 300 hours of live demonstrations each week.
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