On 11 February 2020, we were delighted to welcome retail industry expert Paula Minowa (Retail Realisation LLP) and restructuring lawyer Catherine Shuttleworth (Freshfields Bruckhaus Deringer LLP) to speak on current challenges in the retail market and tools available for restructurings.
Paula explained what she considered to be the top five challenges for retail businesses and gave useful insights into practical and structural challenges faced the by high street. Catherine presented a highly informative summary of the various legal tools that may be utilised by companies to restructure balance sheet and operational liabilities, with a particular focus on CVAs and pre-pack administration sales.
The pair discussed their views on the role of good management in turn-arounds and the future of CVAs in the UK, particularly following the recent High Court decision in Discovery (Northampton) Limited & Ors v Debenhams Retail Limited & Ors. Both Paula and Catherine agreed that, whilst CVAs may be less common in the coming year and should be an option of last resort, they still may offer useful breathing space to allow businesses to implement a turn-around.
Special thanks to Clare Tanner, special counsel at K&L Gates, for organising and to GLAS for hosting the event.