Restructuring experts from RSM have advised healthy eating chain Abokado on a Company Voluntary Arrangement (CVA) which has been voted through by 99 per cent of its creditors.
Abokado, which has 23 outlets across London, announced its intention to seek a CVA after experiencing softer sales amid challenging trading conditions. The company also fell victim to a sophisticated bank fraud which impacted working capital.
Abokado chief executive Mark Lilley said:
Our CVA was voted through by an overwhelming majority. I’d like to thank all our stakeholders for their support. The CVA was vital to protect our strong and profitable core business. I’ve been immensely proud of how my management team and the Abokado family as a whole have handled themselves during what has been a difficult period. I know we’re all looking forward to getting back to doing what we love – focusing on our customers and investing in and growing the Abokado brand.”
Damian Webb, a partner from RSM Restructuring LLP who advised Abokado on its CVA said:
'We were delighted to work with the Company to secure the approval of this CVA. This restructuring ensures over 185 jobs are maintained and the business is well placed for the future. The 99 per cent support from creditors reflects their approval of the process and the proposals put forward by the Company.'