Barratts creditors knock back CVA says Deloitte
Company voluntary arrangement plan for Barratts Shoes and Priceless Shoes rejected by creditors
Creditors and landlords of Barratt’s Shoes and Priceless Shoes have turned
down the offer of a company voluntary arrangement, leaving the futures of 5,450
staff hanging in the balance.
Administrators from Deloitte will now try and sell the businesses as a going
concern in the middle of tricky economic conditions.
Daniel Butters, Neville Kahn, and Lee Manning of Deloitte were appointed as
joint administrators of Barratts Shoes and Priceless Shoes, the trading
subsidiaries of Stylo plc, the high street shoe retailer last month.
Butters said: ‘Following the meeting and vote yesterday we confirm that
creditors and landlords have not accepted the CVA proposals.’
CVAs offer a repayment proposal to the creditors aimed at allowing the
company time to address its issues and then repay all, or some, of what is owed
within an agreed time frame.
However CVAs are disliked by creditors because the proposed returns are
usually a fraction of what they are owed.
‘As a consequence we will now seek to achieve a sale as a going concern to
preserve as many jobs as possible. We are in focused talks with interested
parties in an effort to deliver a swift solution,’ Butters added.
Further reading:
Barratts
Shoes enters administration