Commenting on the Company Voluntary Arrangement (CVA) proposal announced by Baird Group, Howard Smith, associate partner at KPMG, joint nominee and proposed joint supervisor of the CVA said.
"Baird Group has a proud heritage in the menswear market, with a number of popular high street brands."
“However, the business has been impacted significantly by the strong headwinds facing the retail sector, including the performance of its concession partners, a sub-sector of retail which has seen a high level of insolvencies in recent years. These challenges were then further exacerbated by the impact of the COVID-19 pandemic.
“The CVA therefore forms a key plank of a wider turnaround programme, which seeks to move the business away from a reliance on concessions, high street channels and workwear categories, instead focussing investment on attractive outlet centres and online sales.”
The CVA proposal divides the store portfolio into two categories as follows:
Baird Group needs to secure at least 75% creditor approval by value for the CVA for it to proceed. Detailed proposal documents will be made available to creditors via a dedicated website today. The creditors will vote on the CVA on 10 August 2020. Consultations have already taken place with key creditors and KPMG will spend the coming weeks in further talks with key creditors to ensure they understand the full detail of the proposal.
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