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CVAs in retail sector rise

Date Added: 09/05/2011  

Company voluntary arrangements (CVAs) among businesses in the retail industry are on the rise, according to the release of new figures from the Insolvency Service.

Barry Knight, head of retail at finance and business advisors Grant Thornton UK LLP, explained that many high street companies are struggling to cope at the moment due to the current economic climate in the UK and have posted poor results.

"Many high street retailers have tried to restructure their company by disposing of some physical outlets in a bid to retain some value and save the business on the back of poor trading," he said.

Mr Knight added that the rise of online shopping could see even more retail companies based on the high street needing to take CVAs.

However, the Federation of Small Businesses' (FSB) Voice of Small Business' Index revealed in March that confidence among companies appears to be on the increase.

National chairman of the FSB John Walker explained firms are bouncing back after a difficult winter.

Posted by Julie Cutts 

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