Even before the devasting effects on businesses of the coronavirus, it is fair to say the restaurant and leisure sector had already experienced more than its share of problems over the past few years.
Businesses have had to face significant rental and rates rises, increases in the national living wage, and rising commodity prices due to the pound being devalued as we continue the wrangle over Brexit. As all of these occurred at the same time, returns in the sector were squeezed, leading to what has been referred to widely as the perfect storm. In many instances, the situation created unsustainable business models with failure being inevitable without drastic action being taken. Enter stage left, the CVA.