Mamas & Papas is pursuing a Company Voluntary Agreement (CVA) as an alternative to administration. We look at how retailers have used the controversial tactic and what happened
Mamas & Papas - August 2014
Terms: The maternity specialist wants rent on 10 stores to be cut by 25% and rent on another 25 stores halved. It also wants to move from paying rent quarterly to monthly. Creditors have been offered 19p to 21p in the pound if the agreement is passed and a compensation pot of up to £450,000.
Creditor vote: Scheduled for September 10
Still trading? Yes
Sit-up TV – March 2014
Terms: Entrepreneurs Paul and Val Wright, the couple who launched Ideal Shopping, had hoped to rescue the shopping channel by investing £6m when a CVA was passed on March 18. It offered creditors 9p to 30p in the pound if they accepted the CVA rather than administration.
Creditor vote: In favour
Still trading? The retailer collapsed into administration a month after the vote.
JJB Sports – March 2011
Terms: In its second CVA within a two-year period JJB wanted to close 43 stores on or before April 24 the following year, and to keep another 46 under review. It also wanted a 50% rent discount ahead of the closures. All stores would then move to monthly payments.
Creditor vote: Approved
Still trading? JJB fell into administration in October 2012.
Oddbins – March 2011
Terms: The off-licence wanted to close a third of its stores and its head office and asked for the rent on the remaining shops to be cut by 30% and paid monthly. Creditors would have got 21p in the pound and share of a £4.7m compensation pot.
Creditor vote: Rejected.
Still trading? Despite falling into administration it was bought by Whittall’s Wine Merchants in April 2011.
Suits You – February 2010
Terms: The 71-store retailer wanted to close 42 loss-making stores, which were to continue trading for the 18 months, and pay 60% of the full rental amount.
Creditor vote: Approved
Still trading? It fell into administration when its parent company Specialty Retail Group was bought by restructuring specialist GA Europe in October 2010 and administrator Zolfo Cooper decided it had no future.
Blacks – November 2009
Terms: The outdoor specialist wanted to exit eight of its 392 stores and stop monthly rent payments for 18 months. It offered compensation of £7.25m.
Creditor vote: Approved
Still trading? After a difficult time following the CVA Blacks fell into administration in 2012 but was rescued by JD Sports.
Focus – August 2009
Terms: Focus wanted to get rid of 38 non-trading stores which cost the retailer £12m each year. It offered landlords a share of a £3.7m compensation fund. It also wanted to move to monthly rents for 18 months.
Creditor vote: Approved
Still trading? Focus fell into administration in 2011.
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