CVA use by retailers more than doubles

The number of retailers using company voluntary arrangements to avoid closure has more than doubled. The controversial restructuring tool, which results in retailers paying less rent on non-profitable and marginal stores, was used by 10 retailers in the year to the end of June, up from four in the previous year, according to law firm RPC. They included clothing chains Robert Goddard and Select Fashion, and the Sofa & Chair Company, filings at Companies House show. RPC said the rise in interest rates had forced retailers to look both at their network of stores and their debt levels. RPC said traditional lease terms in the UK commercial property market “make it very hard for them to reduce their property costs in any other way”. The Times (£)