National law firm Shoosmiths, has advised DJ & C Foods Limited (t/a Love Coffee), a national coffee house chain, on a CVA deal with its creditors that will save hundreds of jobs.
This latest CVA comes soon after Shoosmiths struck another CVA deal for another retail client, Grabal Alok (t/a Store Twenty One), with the measures arranged saving thousands of jobs.
At a meeting of creditors held on 9 December 2016 the Company Voluntary Arrangement (CVA) proposed was approved. Damian Webb and Philip Sykes, of RSM Restructuring and Advisory LLP will now become the Supervisors of the CVA and monitor the implementation of the proposal.
Love Coffee is a family-run business and committed to providing the richest coffee and fresh food which is all handmade every morning in stores. The chain's 35 stores employ more than 200 staff.
Legal advice was provided to DJ & C Foods by senior associate Aaron Harlow and partner James Keates of Shoosmiths LLP - the same team which worked on the Store Twenty One CVA.
Vikesh Kumar Patel, Director of Love Coffee, said 'We would like to thank all of our employees, creditors and stakeholders for their support through this challenging period. The directors and management team now look forward to focussing on the future of Love Coffee and working together to make this business a success for many years to come.'
Aaron Harlow, senior associate at Shoosmiths who led the deal, said: 'It has been a pleasure to advise the Company on this complex CVA deal. In our view this arrangement was in the interests of all parties concerned and as a result the business is healthier and hundreds of jobs have been preserved before Christmas. Shoosmiths has been very active in providing the retail sector with restructuring advice of late, and with our experience, are able to advise on very complex arrangements.'
Damian Webb, partner at RSM who also advised DJ & C Foods, commented: 'This deal is a positive outcome for all and the level of votes in favour of the CVA, demonstrates the strong relationships that the Company has with its stakeholders. It also demonstrates the tremendous support for the Love Coffee business.'
Shoosmiths' corporate team advises public and private companies, management teams, investors and debt providers through the business life cycle. Shoosmiths work with businesses from start-up and first round finance through to mergers and acquisitions, MBO and MBI transactions, development funding and on exits, by way of sale, listing, private equity investment and on restructuring deals such as CVA's.
Nationally, the corporate team is ranked in joint first place by deal volume in Experian's UK Deal Review and Advisor League Table. The team was recognised for its mergers and acquisitions expertise at the 2015 M&A Awards, winning the Law Firm of the Year category.