Uniglaze the Norwich-based the toughened glass and double glazing firm, has gone into administration despite doing a deal with its creditors last year. At the time a new management team, led by managing director Philip Davis, was drafted in to oversee a CVA (Company Voluntary Arrangement) – The move kept the firm afloat, saving some 280 jobs at the time.
However, Administrator Chris Pole the director of KPMG's restructuring said; " In spite of the company’s efforts to find a resolution to its problems via a CVA, the company’s cashflow has been substantially impacted by a further decline in turnover and the insolvency of a key customer. “In the context of a persistently difficult market for businesses supplying into the construction sector, the company has been unable to restructure further or to attract additional funding, leaving the directors with no other option than to seek the appointment of administrators."
A total of 88 staff have lost their jobs and KPMG are looking for a buyer.
So, it is pretty clear that this is not ammunition for those that say that all CVAs don't work. Yes, some do not work and are misused and in order to facilitate discussion and debate in this area we have a new website at www.company-voluntary-arrangements.co.uk where anyone is free to discuss the mechanism. Lawyers, landlords, funders, employees, insolvency practitioners, directors are all invited to contribute.
Details of how to contribute are on the site or you can just email firstname.lastname@example.org