CVAs ‘delay’ retailer failures

Company voluntary arrangements are merely prolonging the “inevitable future failure” of the retailer launching these processes, according to new research. CVAs are deployed by retailers as an insolvency process to cut rents and close stores in a bid to stave off collapse. However, out of 23 retailers undertaking a CVA since 2016, more than half (13) have collapsed into administration, according to Colliers International. These casualties have included BHS, Toys R Us and Mothercare. David Fox, co-head of retail agency at Colliers International, said: “It is clearly not a mechanism that can be guaranteed to deliver a long-term viable solution. It merely just delays the inevitable future failure, pushing out the problems for the next couple of years, creating even more polarisation in the market place.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette