The CVA challenge process concludes in retailers’ favour
Debenhams has announced that all relevant procedural matters dealt with at a CVA legal challenge hearing in February have concluded in its favour.
The legal challenge pertains to an appeal brought forward by the Combined Property Control Group (CPC) who owns six properties let by Debenhams and alleged it was being treated unfairly as a creditor for the department store, after their initial challenge was rejected by the High Court in September.
Debenhams has now said that the time period for any appeal to be lodged has now expired, which means the CVA challenge process has come to an end. Its CVA will remain effective and Debenhams will continue with plans to close 50 of its 166 stores and secure rent cuts on others in the months to come.
Debenhams chief executive Stefaan Vansteenkiste commented: “We can put the distraction of this litigation behind us and proceed with our plans to turn the business around. With committed investors, a strengthened board and a restructured balance sheet we have the platform from which to rebuild a sustainable business.”
