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In the latest High Court decision relating to Company Voluntary Arrangements in the UK, the judge held that the Regis hairdressing group CVA should be revoked on the basis that it favoured shareholders at the expense of landlord creditors.
In recent years, retailers have increasingly used the restructuring mechanism of a Company Voluntary Arrangement (CVA) to reduce their lease liabilities (reducing rents, writing off arrears and closing stores) with a view to returning their business to profitability. Often, that seems to be for the benefit of their shareholders, finance creditors and trade suppliers at the expense of landlords.