British home retailer Oka, which recently filed for Chapter 7 bankruptcy and closed its U.S. operations, is now seeking a Company Voluntary Arrangement (CVA) in the UK to avoid bankruptcy proceedings there. The CVA is a legal agreement that allows distressed companies to reach a compromise with creditors while continuing operations to repay debts.
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According to Sky News, Oka plans to close one of its 13 UK stores and may lay off up to 40 employees out of its remaining workforce of 250. Additionally, the company's distribution centre and head office would be affected by these changes. Oka has already shut down all of its stores in the United States, including locations in Houston, Dallas, and Westport, Connecticut.
Investindustrial, Oka's owner and a major stakeholder in the Flos B&B Italia Group, has committed to injecting cash into the business pending court and creditor approval of the CVA. Restructuring firm Teneo, overseeing the process, suggests that Oka could receive up to $5 million in financial support.
Source: www.businessofhome.com