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Wednesday, 30 September 2009

Blacks to Close 89 stores, using a company voluntary arrangement?

BBC, Times and Retail Week report that Blacks is cutting 89 stores. None of these news items mention the CVA story (see earlier blog here http://companyrescue.blogspot.com/2009/09/blacks-leisure-chooses-company.html )

I suspect that the store leases will be determined by the CVA as they have been loss making for a considerable period. This means in plain English, " we cannot wait to get rid of 89 loss making stores where the leases have us tied up in knots"!

Additionally, around 50 head office jobs are to go.

This CVA will be interesting - will it follow the JJB plc and Focus DIY plc model? In those cases the only creditors taking part were the landlords of unwanted stores. A normal CVA would include all or mostly all creditors.

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