The British Property Federation and the administrators handling coffee chain Love Coffee’s CVA have made up after criticism of the way landlords were being “left out of pocket”.
Last week the BPF said Love Coffee’s CVA proposal was a “massive step backwards” for open and transparent insolvency negotiations.
25 November: Love Coffee CVA criticised by BPF
Today the BPF said that it had agreed a way forward with administrators RSM after “resolving areas of contention”.
Ian Fletcher, BPF director of policy, said: “We are now engaging constructively and openly with RSM on behalf of the commercial landlords we represent to forge a CVA that works in the best interests of all stakeholders.
“We believe transparency is the key to developing a robust CVA.
“We are pleased to be working with RSM and we are confident that together we can achieve the best possible result for all.”
Damian Webb of RSM, the proposed supervisor of the CVA, said: “We have now had the opportunity to articulate to the BPF the logic and reasoning for the CVA.
“We very much welcome the ongoing input of the BPF which will hopefully lead to a satisfactory outcome for all concerned.
“It has been good that we have been able to resolve the key issues and look to move forward with the process.”
Love Coffee has 29 stores across the UK including in Westfield Stratford. It said last week that despite management action and investment of £350k a minority of stores’ performance had deteriorated and were impacting the company viability.
