Blossom with a CVA

TMP firmly believes that a Company Voluntary Arrangement ("CVA") is a flexible and effective tool in the right circumstances. This was recently evidenced in a successful restructuring of a central London retail outlet operating in the cut flowers sector.

The directors, unhappy with their existing accountants, approached a new accountant who is familiar with TMP and its specialist knowledge and turnaround expertise.

It was readily apparent that the company was struggling to maintain an existing HMRC "time to pay" scheme, resulting in severe cash flow difficulties. The scheme, which would have paid HMRC in full, was agreed under the threat of a winding up petition.

Considerations for TMP

  • TMP had to assess the viability of the underlying business, given its knock by the recession and tightening of budgets for cut flowers, considered to be luxury goods
  • The business was well established with excellent premises, a good order book with desirable clientele, including large contracts
  • Operating in the mid to top end market, the business had already won a silver medal at an International Trade Show.

Issues for TMP

  • HMRC was a large creditor, therefore it was imperative that they bought into CVA - otherwise no chance of it being approved
  • It was essential also to bind two major trade creditors, who were key suppliers to the company, to ensure the future success of the company
  • A bank guarantee for company's bank overdraft and loan, secured on the director's matrimonial home (PG), needed to be addressed
  • The premises lease was in the personal names of the directors, so the landlord was kept informed but largely unaffected by the process.


  • The CVA proposal was for a contribution of 61p in the £ over 4.5 years and was unanimously approved by creditors
  • The company continues to flourish and to run on going accounts with it two major suppliers who themselves are profitable
  • The accountant earned a fee for work on cash flows, projections and for supporting the company through the hiatus period – and, most importantly, he retained his client.

Please contact TMP if you are interested in the turnaround services we offer. As always, we are here to help.