RSM restructuring advisory LLP has advised DJ&C Foods Ltd (t/a Love Coffee), a national coffee chain, on a Company Voluntary Arrangement (CVA) with its creditors which has saved hundreds of jobs.
At a meeting of creditors held on 9 December 2016 the Company Voluntary Arrangement (CVA) proposed was approved. Damian Webb and Phillip Sykes from RSM will now become the supervisors of the CVA and monitor the implementation of the proposal.
The family run business employs over 200 staff across its 35 stores. Historically profitable trading deteriorated in 2016 as a consequence of well publicised retail failures and weak seasonal footfall in key locations. Consequently, the directors, advised by RSM, proposed the CVA to creditors as a means of ensuring the future viability of Love Coffee.
Commenting on the agreement, Damian Webb, a restructuring partner at RSM said:
‘The approval of this agreement is good for all parties, it ensures the on-going trading of Love Coffee, protecting over 200 jobs and ensuring a minimum of disruption to the company’s key stakeholders. By securing a consensual restructuring with the company’s creditors we have avoided other scenarios which would have undermined returns to the company’s creditors.
Vikesh Kumar Patel, Director of Love Coffee, said:
'We would like to thank all of our employees, creditors and stakeholders for their support through this challenging period. The directors and management team now look forward to focussing on the future of Love Coffee and working together to make this business a success for many years to come.'