Virgin Active restructuring to set high street precedent

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By Owen Sanderson
20 Apr 2021

UK gym chain Virgin Active’s restructuring could set a precedent for restructurings of UK retailers. Dozens of retailers have used ‘CVA’ processes to cut their debt burdens, which typically hits their landlords hard but leaves other creditors unscathed. Virgin Active is instead using the new UK ‘super scheme’ restructuring law introduced last year to try to bind landlords and other creditors alike into accepting writedowns.

The new UK law was heralded last year as a potentially huge leap forward (though some were critical of its provisions), adding new tools to the armoury of restructuring professionals, and giving companies more flexible options to manage their capital structures in distress.

It was colloquially called ...

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