Focus set for CVA approval today
DIY retailers' CVA masterminded by BDO Stoy Hayward tipped for success
Creditors of retailer Focus
DIY are expected to approve a creditors’ voluntary arrangement
today, which would save 5,000 jobs.
Administrators from
BDO
Stoy Hayward are leading the plan, which would require many of
Focus’ landlords taking a hit on their leases.
Focus requires 75% of creditors to back the plan, which would see the leases
ended of 38 stores that currently drain £12m a year from Focus’ coffers.
The landlords, including British Land, Land Securities and Aviva will receive
some compensation and further rate payments, reported
The
Guardian.
If the CVA fails it is expected that the profitable parts of the business
would be sold through a pre-pack administration, which could see creditors lose
out.
Further reading:
BDO aims to mirror JJB success
with Focus CVA