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CollinsHayeshqHERITAGE sofa maker Collins and Hayes has secured its near-term future after creditors backed a Company Voluntary Arrangement (CVA).

 

Financial director Rod Dempster confirmed to The Furnishing Report that creditors had agreed to the Sussex upholstery producer's rescue plan this week.


Under the terms of Collins and Hayes' original proposal, unsecured creditors were due to receive 20 pence in the pound over the next five years. That should save the sofa maker around £4 million.


Turnaround firm KSA is the CVA supervisor.


Separately, Mr Dempster didn't provide any immediate comment when offered the opportunity on the resignations of Nazia Babar and Babar Siddique Khan, whose departures from the Collins and Hayes' board were signposted in Companies House filings ahead of the CVA vote.


Mr Dempster and Ayiaz Ahmed, who owns the Hastings-based manufacturer through his Wessex Bristol Investments company, are now sole directors of the company. Ms Babar, who is Mr Ahmed's sister, remains a director at Wesley Barrell, another Wessex Bristol-owned business.

Update 4pm Friday: In a statement issued Friday, the company said: "Collins and Hayes Furniture Limited is pleased to announce that our application for a Company Voluntary Announcement (CVA) was granted by the court on June 13, 2017 after being duly approved by our creditors and members.

"As a company, we recognise the difficulties this process has caused our suppliers and customers alike and we are extremely grateful for the continued support of everyone that has seen us through this stressful time.

"We look forward to strengthening relationships and re-establishing our focus on manufacturing and delivering high quality furniture."


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