Crunch vote for Discover Leisure
UNSECURED creditors will today vote on proposals to shape the future of Yorkshire caravan retailer Discover Leisure.
The East Yorkshire-based firm needs the support of 75% of unsecured creditors to pass a Company Voluntary Arrangement (CVA).
Discover recently revealed plans to downsize from 16 branches to five and negotiate new banking and stock funding facilities.
Creditors are being urged to accept cuts in the £10.3m they are owed by accepting the CVA. Under the CVA they would receive 22p in the pound.
If the vote is not passed, it is feared Discover could go into administration, with creditors receiving far less.
The CVA meeting is being held at the Hilton Hotel in Leeds.
The remaining five larger locations after the restructuring will be at Birtley, Chorley, Darlington, Delamere and York, which accounted for 60% of the group’s revenues for the six months ended March 1, 2009.
Revenue however fell by 21% to £40.7m from £51.8m in the same period the year before. Like-for-like pre-tax loses were £9.5m compared to £1.8m.
