Following approval by creditors Power league football centres in the UK will be going through a CVA process as part of the business restructure. Now Power league Fives creditors have approved the company’s prior proposal to close 13 of its sites across England and Wales. This will lead to the loss of up to 109 jobs as the company resorts to a company voluntary arrangement (CVA) to restructure its business.
Power league Fives has a significant role in the football sector in the UK. They offer five-a-side football facilities with over 440 pitches across 50 sites in the country and Ireland as well. 580 workers are employed directly by the artificial football pitch operator across its sites as well as in its head office in Wembley, England. The company also has contracts with a number of sports coaches and referees across the locations it operates.
In a meeting held about 2 weeks ago at the middle of October 2018, the business creditors or Power league Fives voted on the company’s CVA proposal. The experts were tasked with the duty of rationalising the company’s leasehold obligation as well as facilitate the refinancing and restructuring the business.
This follows challenges the company has had in the past 3 years. Power league had had a declining of like-for-like revenues that has been experienced by the company as well as failed attempts to raise enough funds under the company’s current lease terms.
There are numerous sites earmarked for closure following the CVA process by Power league. These sites are in Manchester South, Leeds North, Leeds Central, Leeds East (Football World), Yardley, Finchley, Shrewsbury, Kilmarnock, Teeside, Halesowen, Basingstoke, Sheffield and Hamilton.
The business will now implement its long-term business plan after the process approved by the creditors. The company will utilise new capital investment provided through Patron Capital together with affiliates. Chief Executive Christian Rose and Mike Evans the chief financial officer will lead the process together with the management team in existence.
The two key leaders Rose and Evans joined Power league in September 2018 from All Star Lanes. These two had led the All Star Lanes facility to a successful restructuring programme.
Rose also assisted G&J Greenall and Chicago Rock Café achieve a turnaround. She commented about the CVA insolvency of Power league where she said that they are a step closer to reaching a restructuring for Power league with the necessary investment. She agrees that it is definitely a very difficult time for those whose jobs are interfered with and she and the other team are working to keep on offering those affected their support.
She added that these significant changes are necessary for achieving a sustainable future for Power league. A CVA is the company’s last chance to rescue Power league. Rose said she was absolutely dedicated to the company’s long-term turnaround project.