Bestway launching CVA amid off-licence lease challenges

(Sharecast News) - Bestway Group, one of the UK's largest privately owned companies, is initiating a company voluntary arrangement (CVA) to address challenges in its Bargain Booze and Wine Rack retail operations, it was reported on Thursday. According to Sky News, which cited industry sources, the financial restructuring was designed to resolve lease issues for about 35 vacant shop locations while seeking rent reductions for about 10 additional sites.

The CVA, expected to be launched before Christmas and overseen by PricewaterhouseCoopers, would allow Bestway to exit unproductive leases within its retail estate.

No job losses were expected as a result of the plan, which was targeting only non-operational properties and lease adjustments.

The move followed a stalemate with landlords unwilling to negotiate lease exits, leaving the company with underused assets.

Bestway Retail, comprising around 200 stores under the Bargain Booze and Wine Rack brands, was apparently facing mounting pressure to streamline its portfolio.

The company acquired the retail estate in 2018 for £7m following the collapse of Conviviality.

Bestway's portfolio includes food wholesale operations, the Well pharmacy chain, cement production, real estate, and banking interests in Pakistan through United Bank.

Bestway had not commented on the restructuring by lunchtime on Thursday.

Reporting by Josh White for Sharecast.com.