Trade body highlights abuse of current CVA system
Following the House of Fraser CVA and the collapse of Poundworld and Fabb Sofas into administration, the British Property Federation has calls on government to conduct an urgent review.
The property industry body believes the CVA process is now being mis-used, and it highlights a number of faults in the current system including:
- Lack of transparency
- Unfair discrimination between different creditors
- The lack of regulation to ensure CVAs are used appropriately and to drive good practice
Chief executive Melanie Leech said: “The CVA process is intended to be part of a comprehensive business recovery plan. Property owners, looking after savers and pensioners’ money, will support businesses who demonstrate this commitment but must protect those pensioners against unfair action that penalises their interests.
“Urgent action is required and we are calling on government today to undertake a review, so that we can restore the CVA process to its original purpose.”