News - Midlands
Blacks announces CVA proposal
Blacks Leisure Group, the troubled Northampton outdoor-supplies company, has announced a company voluntary arrangement (CVA) proposal. Blacks runs 392 stores across the UK and Ireland, trading primarily as Blacks and Millets. Commenting on the announcement, Richard Fleming, UK head of restructuring at KPMG and proposed “supervisor” of the CVA, said: "The proposed CVA gives Blacks the opportunity to preserve 291 trading stores and approximately 4,300 jobs. The CVA proposal is asking the landlords of 101 unoccupied stores to come to a compromise on the company's financial liability. We believe the proposed CVA offers a fair balance between the operational needs of Blacks and the landlords' rights under the tenancy agreements. The total compensation being offered to the landlords is £7.25m, which equates to approximately six months' rent each. In addition, given the size of the potential liability, the group will continue to pay rates until the leases are surrendered or forfeited in consultation with landlords." For the CVA proposal to take effect, 75 per cent of the creditors will need to agree to the terms. The creditors' meetings will be held in London on 23 November, with the shareholders' meetings on 24 November. If passed, the CVA will last for approximately nine months.