Miss Sixty faces legal challenge over CVA

Fashion brand Miss Sixty is allegedly at the centre of a legal action

brought by British landlord Mourant & Co Trustees.
 
Last year Miss Sixty escaped administration by entering into a Company Voluntary Arrangement (CVA), a procedure which allows a financially troubled company to reach a binding agreement with its creditors about payment of its debts over an agreed period of time.
 
However, terms of the CVA stripped Mourant & Co Trustees of the right to ask Miss Sixty’s parent firm in Italy, the guarantor of two leases it had agreed, to pay what was owed by Miss Sixty UK.
 
Mourant & Co Trustees has taken the matter to the High Court and a legal win could mark a change in the law, making it tougher for companies to agree complex restructurings such as pre-pack administrations and CVAs, which has saved retailers such as JJB and Blacks Leisure in the past.
 
A court decision is anticipated this month.