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Black's Leisure agrees CVA

Published on 24 Nov 2009 under category: legal

A company voluntary agreement (CVA) has been put in place for Black's Leisure.

The outdoor specialist saw its application approved by 98 per cent of its landlords.

Only 75 per cent had to give their backing to the CVA for the agreement to go through.

The approval will mean that dozens of the firm's stores around the UK will close, although rent will continue to be paid on sites with time remaining on their lease.

Neil Gillis, chief executive for Blacks Leisure, said that the company is "delighted" that its CVA proposals have been approved, adding that this outcome is the best for all parties concerned.

He commented: "The process addresses a long-standing issue at the heart of the group's difficulties in recent years - its tail of unprofitable stores - creating a significantly stronger business and, crucially, preserving over 4,000 jobs."

Earlier this month, Black's Leisure announced restructuring plans which aimed to prevent the firm going into insolvency.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.