Early Exit from CVA Process Boosts Apricot’s Business and Creditors’ Dividends

  • Creditors vote for Apricot’s early exit from CVA
  • Improvement in trade led to renegotiation of store leases
  • No planned store closures due to landlords’ refusal to renegotiate rents during Covid-19
  • Creditors unopposed to the decision

Creditors of Apricot have voted in favor of the retailer exiting its Company Voluntary Arrangement (CVA) process 16 months ahead of schedule, thanks to an improvement in trade. Initially launched in January 2021 to renegotiate rents on 13 UK standalone stores, Apricot’s director and owner, Philip Chaimo, reported that they were able to renegotiate terms due to better business performance. The CVA was initially set to end on December 31, 2023; however, it will now conclude earlier following a unanimous vote by creditors on August 23. This decision comes after landlords refused to renegotiate rents during the pandemic, leading to no planned store closures.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Apricot’s CVA and its early termination due to improved trade. It cites sources (Drapers) and includes relevant details about the initial CVA plan and the decision to exit it earlier than planned. However, there is a slight lack of context on the specific improvements in trade that led to this decision.
Noise Level: 4
Noise Justification: The article provides relevant information about Apricot’s decision to exit its CVA earlier than planned due to an improvement in trade and creditor approval. It also mentions the initial reason for launching the CVA (pandemic-related rent issues) and the positive outcome of renegotiating store leases. However, it could provide more context on Apricot’s financial situation and future plans.
Financial Relevance: Yes
Financial Markets Impacted: Apricot retailer and its creditors
Financial Rating Justification: The article discusses Apricot’s CVA process and its impact on the company’s financial situation, as well as creditor decisions related to the restructuring process.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text

Reported publicly: www.retailsector.co.uk