sit-up Limited, the digital broadcaster behind Price Drop and Bid TV, is finalising a restructuring plan by way of a Company Voluntary Arrangement.
The company was sold to Tnui Capital in December 2013. It currently broadcasts to more than 12 million homes, with over 300 hours of live demonstrations each week.
Commenting on the restructuring, Bryan Green, CEO of Tnui Capital, said: "A first class team has been assembled to drive through the restructuring of Bid TV and Price Drop. We believe the business will be preserved through a CVA which will save 350 jobs."
Will Wright, partner at KPMG and proposed ‘supervisor’ of the CVA, added: “The restructuring entails a £6 million investment from retail entrepreneurs Paul and Val Wright, which is conditional on the CVA being approved by creditors.”
He added: “In recent months, sit-up Limited has undertaken an enormous amount of work to restore margins and is developing a new operating model which will see it link with its suppliers in a more direct way. If agreed, the CVA, coupled with the investment from Paul and Val Wright, will be the final piece of the jigsaw, enabling the company to right-size its infrastructure and putting it on a much sounder footing.”
The creditors’ meeting will be held at KPMG’s Salisbury Square office on 18 March 2014 at 2pm. The proposal will require the approval of in excess of 75% (by value) of creditors voting
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About company voluntary arrangements (CVAs)
Where a company is experiencing difficulties in paying its debts, the directors can propose a company voluntary arrangement (CVA) whereby the company enters into a legally binding agreement with its creditors, such as their suppliers or landlords. In a similar vein to an individual voluntary arrangement (IVA), which gives an individual an alternative to bankruptcy, a CVA enables a company and its creditors to come to a compromise agreement and avoid an administration or liquidation. A CVA can provide a company with some breathing space to allow it to reorganise or restructure its funding and/or its operations with as little disruption to the day to day trading as possible, with the control of the company usually staying within the existing management.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.