Carlisle-based dealer G&M Supplies has entered into a Company Voluntary Agreement (CVA) to allow it to continue to trade.
Following a members’ meeting for the distributor, a notice recently posted on the Companies House website detailed that: “On Wednesday 8 January 2020, a proposal for a CVA was considered and accepted without modifications by creditors, which incorporated the appointment of Hugh Jesseman of Antony Batty & Company as supervisor.”
The insolvency practitioner will now work out an arrangement covering the amount of debt the dealer can pay, as well as a payment schedule.
More than 75% of creditors had to approve the CVA for the proposal to be accepted and in the end, 84.43% voted for it to take place.
G&M’s MD Gavin McKew attended the meeting at Antony Batty & Company’s London headquarters via conference call and all other creditors were represented by proxy.
The distributor’s current debts total £288,602.31, therefore the creditors accepting the proposal represented £243,675.79 of this sum. The 15.57%/£44,926.52 voting against the CVA was HM Revenue & Customs.
Chief among the creditors is warewashing firm, Classeq, which is owed over £104,000.
According to David Smithson, CEO of Classeq’s parent company, Winterhalter UK: “We work very closely with all our distributors and have been aware that G&M Supplies has been experiencing difficulties for some time.
“As such we have been in discussions over the past few months to help support the company over what has clearly been a challenging period for them, and also agreed a managed solution which has assisted them to keep trading.”
Other familiar names on the creditors list include Parry Catering Equipment, Blue Seal and Interlevin Refrigeration.
Catering Insight contacted Antony Batty & Company, who confirmed they have been instructed to place G&M into a CVA and that a creditors’ report would be issued shortly. However, they could not add any further details, as McKew is still in charge of the distributor. Catering Insight has been unable to reach him as of yet.