CVA approved for Blacks Leisure

by Rachael Singh

More from this author

23 Nov 2009

  • Comments

The creditors involved at Blacks Leisure, the outdoor clothing retailer, has approved the Company Voluntary Arrangement deal.

The CVA set out a financial compromise between landlords of the unoccupied stores and the company.

The administration process needed a minimum 75% vote but managed to get the backing of 98% of the creditors.

Richard Fleming, UK head of restructuring at KPMG and ‘supervisor’ of the CVA, said: “This is a pivotal moment in the turnaround of Blacks. Without the approval of the CVA, the company faced administration, putting 4,300 jobs and 291 trading stores at risk."

Fleming continued: "The CVA agreement between Blacks and its creditors shows that a less destructive insolvency process is possible."

Brian Green, restructuring partner at KPMG and ‘supervisor’ of the CVA, added: “The CVA of Blacks follows the JJB ‘model’ and, in very difficult circumstances, it provides landlords with a level of compensation for the termination of long lease obligations."

"While the recession continues to bite, it is important that companies work with their creditors to strike a fair balance between meeting their contractual obligations and protecting the healthy parts of the business," he said.

As part of the CVA the landlords of the unoccupied stores will receive a total compensation package of £7.25m which equates to approximately six months rent each.

Blacks has approximately 392 stores in the UK and Ireland.

A CVA is an administration process which allows companies to repay some or all of its debts based on future profits but needs to be voted for by the majority of creditors.

Further reading:

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send


Financial Planner

The Ministry of Defence Surgeon General’s (SG) Finance Department, Lichfield, Staffordshire, Permanent, Full Time, £ £30,008




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.