CVA Arranged for Cash-Strapped Bookseller
Begbies Traynor have saved a motoring bookseller from collapse by arranging a Company Voluntary Arrangement (CVA).
Motor Books (UK) Ltd, which is based in London, was established in 1950 and over the years has expanded its operations to cover railway, aviation, maritime and military subjects.
Bob Young, partner at Begbies Traynor, said: ‘Motor Books was highly popular with its customers but a number of decisions and issues in recent years had contributed to the business falling into an insolvent situation.’
These included problems with expansions into stores around the country and cashflow difficulties when the firm’s principal supplier of motoring titles, Menoshire Ltd, suddenly ceased trading.
The owner of the business, Thomas Gethings, has put over £150,000 into the company to enable it to continue trading.
Under the CVA, the proposals provide for all creditors to be paid in full over a five year period.
Young said: ‘By focusing on one location in an excellent area for bookstores, and by building up online sales, it is considered that the business has a sound future. That is why we worked with Mr Gethings towards establishing a CVA as the best way forward both for the business and for the creditors, who would have received considerably less if the business had gone into liquidation.’