Sad news today with the confirmation that David Price Food Services has ceased trading with immediate effect, with the loss of more than one hundred jobs and no doubt a significant impact on the local region.
The Tyne and Wear operator is set another in a long line of companies that having entered into a Company Voluntary Arrangement (CVA) – in its case just over a year ago – has ultimately succumbed.
Indeed, trading successfully out of a CVA is a challenge that those in road transport are failing to meet in alarming numbers. Recent CVA failures include Palletline Logistics (Midlands) and Elite Transport, which had to be saved by one time rival Deben Transport in the end.
Other CVA collapses from this year alone include LJ Quinn, Bond Transport (which unusually followed its CVA with a pre-pack administration) and B2B Logistics, a company that tried just about every financial restructuring option available to stay a float.
Clarks Direct/The Delivery Specialists failed the terms of its CVA at the end of January this year.
CVAs are of course an option of last resort – and remain hugely unpopular amongst many in road transport sector, arguably with good reason – but with such a long line of casualties this year alone, are they an arrangement best avoided?