Make an enquiry

    Enquiry Form









    Contact

      Enquiry Form






      Supporting Document


      We are welcoming clients back to our offices Find Out More
      FJG Solicitors in Essex, Colchester, Chelmsford, London – Fisher Jones Greenwood
      • 0845 543 5700
      • [email protected]
      • Make an enquiry
      • Online Payment
      • Home
      • Services
        • Services for you
          • Advocacy
          • Civil & Commercial Disputes
          • Clinical and Medical Negligence
          • Conveyancing
          • Employment Law
          • Family Law
          • Children Law
          • Immigration & Visas
          • Notary Services
          • Personal Injury
          • Wills, Life Planning & Probate
        • Services for business
          • Academies Portal
          • Agricultural and Rural
          • Business Immigration
          • Commercial Dispute Resolution
          • Commercial Litigation
          • Professional Negligence
          • Commercial Property
          • Construction Law
          • Planning Consultancy
          • Corporate and Commercial
          • Education Services
          • Employment Law
          • Healthcare Services
          • International Services
          • Landlord & Tenant Services
        • Services by sector
          • Agriculture & Estates
          • Care Homes
          • Charities & Social Enterprise
          • Construction
          • Education Law
          • Energy
          • Family Owned Business
          • Healthcare & Dentistry
      • Our people
      • About us
        • CSR
        • Awards
        • Our Vision
        • Accessibility
        • Careers
        • Work Experience
        • Equality & Diversity
        • FLOCC
        • FJG Foundation
        • SAFE Forum
      • News, Events & Insights
      • Blog
      • Podcasts
      • Contact us
        • Colchester
        • Chelmsford
        • Clacton-on-Sea
        • Billericay
        • Braintree
        • Frinton-on-Sea
        • Holland-on-Sea
        • London

      Debenhams update: restructuring plans gone wrong?

      13 June 2019 by

      debenhams, Company Voluntary Arrangement, Sports Direct, pre-packed administration
      debenhams, Company Voluntary Arrangement, Sports Direct, pre-packed administration

      Debenhams enters Company Voluntary Arrangements (CVA) after restructuring plans go wrong. Retail giant Debenhams went into pre-packed administration on 9th April 2019. For further details of the original development of this story, you can access our previous blog available here: Are Debenhams Stores Closing?

      Since our last blog on this topic, Debenhams has rejected finance offers put forward by Sports Direct. Sports Direct were Debenhams largest shareholder, owning approximately 29% of its issued share capital at that time. Control over Debenhams has since passed to its lenders; i.e. Barclays and US hedge funds. As a result, Sports Direct lost its shares in Debenhams together with its investment of approximately £150 million.

      What happened since 9th April 2019?

      Debenhams announced on the 26th April 2019 that it had planned for rent reductions; as well as closing 22 stores after Christmas 2019. This is part of a Company Voluntary Arrangement (CVA) (a specialist insolvency procedure) that Debenhams entered in to with a view to reach an agreement with its creditors to pay off all or part of its debts and provide a turnaround for Debenhams. It confirmed that “Debenhams’ CVA proposals were approved by the vast majority of landlords and more than 90% of all creditors”.

      The creditors (including Sports Direct) were given a 28-day period during which they could appeal the CVA. Sports Direct challenged the CVA in court, with a view to overturn such arrangement, following the decision of Debenhams’ creditors to turnaround the store chain by closing approximately 50 stores and reducing rents to approximately 100 stores.

      What do the lenders say about Company Voluntary Arrangement challenges?

      It is noted that the lenders confirmed the CVA challenges are “spurious, without merit and will vigorously defend them”. Moreover, such challenges are just ‘unnecessary distraction as the lenders implement their restructuring plans”.

      What happens next?

      It is not certain at this moment in time whether Sports Direct’s challenge will be successful or not. However, if the claim is successful, Debenhams may have to change their current restructuring plans.

      As a result, the future of Debenhams continues to appear to be both bleak and precarious – with further developments expected in the not-too-distant-future.

      The Corporate Commercial Department here at Fisher Jones Greenwood LLP can assist you with a company voluntary arrangement, internal restructures, sale of a business, acquisitions, and/or any other related services; as well as assist you with the preparation of any documentation required and guide you through the transaction.

      Should you require any information or assistance do not hesitate to get in touch. Please call 01206 700113 or email [email protected]

      Source: BBC News


       

      Read other blog articles by Andreea Brindas…

      What’s happening with Jamie’s Italian?

      Authors
      Archives
      Subscribe to RSS feed

      Recent Posts

      • Worth the wait
      • What is a section 37 report?
      • What is a section 7 report?
      @FJGSolicitors

      We've had a 5* review from Zoe: Moving home https://t.co/4lbJehtq0g

      8 hours

      RT @MistleyCC: How good did the new T20 kit look on Thursday?! 🔥 A massive thanks to @FJGSolicitors for sponsoring our kit this year! https…

      23 hours

      We've had a 5* review from Nicholas: EXCELLENT ADVICE AND VERY EFFICIENT https://t.co/4lbJehtq0g

      1 day
      Billericay 01277 623132
      Braintree 01376 552828
      Chelmsford 01245 890110
      Colchester 01206 835300
      Clacton 01255 323103
      Frinton 01255 514100
      Holland-on-Sea 01255 818900
      London 08455 435700
      Sudbury 01787 373387
      • Disclaimer
      • Accessibility
      • Terms & Conditions
      • Privacy Policy
      • Cookies
      • Price & Service
      • Signup to our Newsletter
      • COVID-19 Risk Assessment

      Fisher Jones Greenwood is the trading name of Fisher Jones Greenwood LLP, a Limited Liability Partnership authorised and regulated by the Solicitors Regulation Authority and registered in England ( Number: OC305854 ). A list of members is available for inspection at the registered office at Charter Court, Newcomen Way, Colchester Business Park, Colchester, Essex CO4 9YA

      This website uses cookies & data collection

      Our website uses cookies, which are small text files that are placed on your computer by websites that you visit to distinguish you from other users. They are widely used in order to help website owners like us provide you with the best user experience possible. They also provide us with information that can help us improve our websites and marketing activities. By clicking an item or link on this website, you agree to the use of cookies and other data collection.

      Find out more

      We are welcoming clients back to our offices

      Differing tiers and three lockdowns later, Fisher Jones Greenwood Solicitors are now pleased to be able to welcome clients safely back to our offices.

      Remote working and the digitalisation of the way we work, have been key to keeping FJG and the rest of the country going.

      • We are now able to offer, pre-booked face-to-face appointments. Although, we are still able to offer remote appointments if preferred.
      • You can continue to visit our offices at any time to post any correspondence and documents through letterboxes.

      If you are visiting an FJG office, covid-19 safety rules of social distancing, hand sanitization, and the wearing of masks will still apply.

      • Please be aware you will also need to have your temperature taken on arrival.
      • There will also be protective screens in place to protect you and our staff.

      Please do not hesitate to contact your legal adviser by email or by telephone should you have any worries or concerns. Alternatively, please call our main switchboard number (01206 835300), and a message to return your call will be relayed to the relevant person.

      Best wishes
      Paula Cameron
      Managing Partner