By Gawain Moore
Following the approval of the company voluntary arrangement (CVA) by the creditors of Toys “R” Us in December 2017, 2018 has seen a number of high profile CVAs. The high street is already facing well-documented challenges and with Brexit likely to cause further economic uncertainty, Gawain Moore explains why CVAs are increasingly seen as an innovative alternative to formal insolvency procedures.
The high street continues to be a difficult place to trade at the moment for retailers and food outlets alike. Businesses are continuing to face a squeeze from a number of factors, including the continued growth of online shopping, soaring labour costs, business rates, the popularity of food delivery companies and a drop in consumer spending amid economic uncertainty.