Suits You Administration is a Sign of Things to Come

British clothing retailer Suits You has collapsed into administration just eight months after entering a company voluntary arrangement (CVA), which aimed to save the Leeds-based business. Administrators Zolfo Cooper said they would wind down loss-making stores, but support the chain’s successful branches and sell as much of the business and assets as possible. The firm’s…

Read More

Creditors Need to be Empowered in Company Voluntary Arrangements

Company Voluntary Arrangements (CVA) can make creditors feel alienated and powerless, so they tend to accept whatever repayment deal is being offered to them. A creditor with little knowledge of their democratic rights will see 30p in the £1 as better than nothing. The majority of creditors are often ill informed, and many think if…

Read More

Time To Pay Arrangements Can Do More Harm Than Good

According to the most recent figures available, around 200,000 businesses have entered Time To Pay (TTP) agreements with the HM Revenue & Customs (HMRC) in the past 18 months, deferring over £5bn in taxes.   TTP arrangements allow businesses that are unable to pay taxes on their due dates to make monthly payment over a period…

Read More

Portsmouth Defeat HMRC in Landmark Legal Case

As I mentioned in an earlier blog, the reason most football clubs are facing financial difficulties is simple: their expenses exceed their income. Portsmouth FC are no exception and currently facing an uphill struggle to remain solvent. However, their battle became a little easier earlier this month after a high court judge rejected claims by…

Read More

JJB Sports Complete Company Voluntary Arrangement

JJB Sports Company Voluntary Arrangement

JJB Sports owners are ‘delighted’ to have concluded their company voluntary arrangement (CVA) last month. The sports equipment retailer entered into a CVA with creditors and shareholders in May 2009 to avoid collapse. But what is a CVA? Companies apply for CVAs when they’re overwhelmed by debt liability and, as a result, unable to trade.…

Read More

Insolvency Practitioners to be Independently Regulated – About Time

Last week, the Office of Fair Trading (OFT) released a report criticising the insolvency industry and calling for the establishment of a complaints body to regulate practitioners. The report found that, on average, insolvency practitioners (IPs) earn fees of up to 20pc of the assets available when firms are wound up. A large part of…

Read More