Administration has been the insolvency procedure that has
predominantly hit the headlines recently. However another process
– the company voluntary arrangement (a CVA) –
is resurfacing as a means of rescuing a company as a going concern.
For companies who are in the retail business with multiple
properties and landlords, the CVA may offer an alternative to
administration, and save more jobs in the process. Stylo, Sixty UK
and JJB are companies which have taken this alternative approach
and there can be little doubt that others will follow.
In this article Derek Ellery and Iain McLean, who have been
advising JJB on the Scottish law aspects of its current CVA
proposal, explain the CVA procedure and its benefits over other
insolvency procedures. On the 27th April the JJB
creditors approved the CVA arrangements.
