Children's furniture and accessories manufacturer and retailer Aspace Ltd, of Warminster, entered a CVA on 22nd January, Bristol's BDO appointed to handle the matter. BDO LLP business restructuring partners, Simon Girling and Danny Dartnaill, were appointed joint supervisors.
Following the negotiation of the CVA, which received a 98.6% vote of approval from unconnected creditors, the company will continue to trade under the control of its directors. Moving forward with a primarily online-only retail operation, the CVA will preserve 50 jobs.
The company’s seven physical stores – one in Bristol and six in the South-east – were closed at the beginning of January as part of a complete restructure of the business, which resulted in the loss of 37 jobs.
Simon Girling comments: “It is, of course, always disappointing to see jobs lost in these challenging times. However, we are very pleased to have secured this arrangement which will ensure stability for the company, its remaining employees and customer base. The directors will remain in full control of the business, with our role being to supervise the performance of the arrangement to the terms agreed with its creditors.”
Dave Knight, Aspace CEO, adds: “In line with many consumer businesses, our sales had become heavily concentrated online, meaning that the retail stores were significantly loss making. We were very sorry to see good people leave, but the CVA has enabled us to restructure and build on the potential that Aspace undoubtedly has, with its strong brand and high-quality products.”
Last year saw several attempts made to reverse the retailer's fortunes prior to it entering the CVA, including management changes and a rebrand. The outstanding debts owed by the company have not been clarified, but are thought to be substantial.