Successful completion of an IVA
BRI Business Recovery and Insolvency are pleased to report that a dividend of 40.54 pence in the pound has been declared and paid to creditors in a recent individual voluntary arrangement (“IVA”) in which John Rimmer and Peter Windatt acted as joint nominees and, subsequently, joint supervisors. This dividend is greater than originally anticipated – the IVA proposal provided for a dividend of 36 pence in the pound.
The debtor had traded as a retailer of cameras and all manner of camera accessories from commercial premises in Oxfordshire. After years of trading successfully, the business started to experience some cash flow difficulties due to the fierce competition with a number of large online retailers. Some larger suppliers also moved towards a position whereby they would not allow their products to be sold on third party websites, reducing the range of products that the business could offer. More and more sales were being generated via the Amazon Marketplace but the operating costs of this did not make it viable as a long term strategy.
So as to protect the position of creditors as far as possible, the debtor sought advice from BRI Business Recovery and Insolvency. The debtor was assisted in subsequently performing an orderly wind down of the business and proposing an IVA to their creditors, which was accepted by creditors in October 2014. The joint supervisors are very pleased with the final outcome for creditors and also for the debtor as they are now able to focus their attention on moving forward.