Lately, there has been a series of reports regarding businesses and company closing some of their retail stores in order to avoid bankruptcy, in exchange many jobs were put at risk and some completely lost their job. And now, it seems like someone is eager to join the list.
Homebase, a British home improvement retailer company has come to a decision to close 42 of its outlets and over 1,500 jobs are being threatened. This was not the first time, the retailer shut down its stores. Earlier this year Homebase had already closed about 17 stores affecting 303 of their workers.
The latest closure was due to a debt problem the company is currently facing and the launch of a company voluntary agreement (CVA). By doing so, the company might just help the business grow. CVA is filed when a business is trying to close shops that are not doing well- which is done in order to let top performing stores grow.
CVA is a kind of tool some retailers use for closing some of their outlets and stores. It has been widely adopted all around the world but still, there are consequences that come with it.
Though the company possesses- sort of, the power of CVA, they will still be needing the help and approval of the landlords, which in turn might not be easy for them.
Some landlords do not agree with the procedure and are openly expressing their disdain about it, stating that it does not do much and only leaves them penny less.
It is quite overwhelming to know that some companies do not seem to work well with the economy. Indeed, it is not always butterflies and rainbow and life is truly a big fat wheel, sometimes you’re on top and sometimes you’re at the bottom. It takes a great strength to balance a wheel and stop it from turning but with just one mistake, disregarding whatever its size is everything can change in a blink of an eye.