UK frame maker says itÕs Ôbusiness as usualÕ

Cambridge Optical Group announced this week that it was Ôbusiness as usualÕ after the successful outcome of its meetings on Friday (February 22) with its creditors and members.
As previously reported (News, February 8) the UKÕs largest frame manufacturer entered into a company voluntary agreement (CVA) Ð a financial rescue plan Ð after a downturn in sales.
Managing director John Hockney approached chartered accountants Peters Elworthy & Moore earlier this year asking for advice as to how to solve the companyÕs financial difficulties. Insolvency practitioner Shay Lettice arranged for the CVA to be put in place and is now the supervisor of the arrangement.
He explained the purpose of last weekÕs meeting: ÔIt allowed both creditors and members to consider and approve the agreement, which they have done. This means the company can continue to trade. I am not involved in that aspect, and John Hockney and his team will continue to manage the business.Õ
The CVA will remain in place for the next five years, during which time the manufacturer will make payments to Mr Lettice. During that period, it is expected that he will then pay creditors who will Ð on a pro rata basis Ð receive a repayment of 95p in the pound.
ÔThis gives the company the breathing space it needs to regroup,Õ concluded Mr Lettice.
Mr Hockney said there was an ÔoverwhelmingÕ vote for acceptance of the proposal. ÔIn fact, all but one supplier voted for it. This is a very positive outcome for the company and its employees.Õ