Discover Leisure going for CVA
KPMG says troubled caravan retailer will propose Company Voluntary Arrangement to avoid collapse
AIM-listed caravan retailer, Discover Leisure Plc’s is hoping creditors will
give the go-ahead to a company voluntary arrangement, allowing some breathing
space to carry on trading and avoid collapse.
Insolvency practitioners from KPMG are hoping to push through a deal which
will see Discover Leisure’s main trading subsidiary Signlease Ltd, enter into
the CVA.
Mark Firmin and Howard Smith, the CVA nominees from KPMG said: ‘The objective
of the CVA is to ensure that the company survives as a going concern.
‘If the CVA is approved, the business will be able to focus on restructuring
for future survival and success. It’s also well worth noting that the return to
creditors will be significantly better via the CVA route than it would be under
the alternative of administration.’
Last month, KPMG brokered
JJB
Sports’ successful CVA. The troubled sportswear company became the first plc
to win the arrangement.