Compulsory voluntary arrangements are becoming more common, but rarely stop retailers from sliding into administration.
According to Colliers, of the 23 large CVAs entered into by businesses since 2016, 13 have subsequently gone into administration, including Jamie’s Italian, BHS and Mothercare.
“For many brands, the CVA fails. It is clearly not a mechanism that can be guaranteed to deliver a long-term viable solution. It merely delays the inevitable.”
Intu and Hammerson have both recently blamed CVAs for the steep fall in value of their assets.
