I’ll be honest. I’d never even heard of a Company Voluntary Arrangement (CVA) before last month. In the olden days, companies just went bust and shut up shop. However, it seems like over the last two months, the list of companies entering into a CVA just gets longer and longer. This very public process of reviewing just how in-trouble the business is, has become daily news.
The obvious start is overpriced food. Prezzo, Jamie’s Italian, Byron and Chimichanga.
Then stuff we’re just learning to live without, Carpetright, Maplin and Poundworld,
Then of course, rediculously overpriced Jaques Vert, or the uninteresting clothing stores such as New Look.
Worryingly, healthcare is in there with Allied Healthcare, looking after our old folks in care homes.
Then this week, restaurant chain Gauch (whoever they are) and the iconic House of Fraser join the list. http://www.bbc.co.uk/news/business-44068513
So what is a CVA? It’s a badge. A label. It says ‘you can’t touch us for a while. We’re in trouble, we need some help’. It allows the rents to be negotiated and the refinancing to begin. Store closures and job losses follow to try and save the brand.
As the minister for magic said, ‘these are dark times, theres no denying’.
Are there just too many stores competiting for a tightening purse? or as a country, are we just not spending our money on overpriced tat any more?