Company voluntary arrangements: Why the CVA model is used, but not always popular in the property sector – Evening Standard


ext month will mark a year since the first Covid-19 lockdown started and many businesses entered the most challenging period they had ever seen.

High street retailers, pubs and restaurants have had to close at various points since March 2020 in line with government rules, and for some of them, a company voluntary arrangement (CVA) has been used to help them ride out the virus crisis.

The CVA model is a way of seeking rent cuts, changes to leases, or closures.

It is often seen as a controversial restructuring tool. For tenants it can be a lifeline and help slash costs, but for landlords it can eat into income. There have long been some concerns from some property owners that the model is not always used by genuinely distressed companies.

But, as the latest lockdown continues and retail and hospitality groups

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