17 Oct 2018
Powerleague to 'restructure business' after creditors approve CVA plans
BY Tom Walker
Five-a-side football centre operator Powerleague will begin restructuring its business after the firm's creditors accepted plans for a company voluntary agreement (CVA).
Creditors voted in favour of the CVA yesterday (16 October) and the business will now look to implement a "long-term business plan" with new capital investment being provided through Patron Capital and its affiliates.
The process is being led by CEO Christian Rose and CFO Mike Evans – both of whom were involved in a successful restructuring programme at boutique bowling enterprise All Star Lanes. Rose has also worked on turnarounds for G&J Greenall and Chicago Rock Café.
The CVA has been designed to rationalise the company's leasehold obligations and facilitate the refinancing and restructuring of the business – without which, according to Powerleague, it would "not have had a viable future".
The company proposed a CVA as "a last resort", following three years of declining like-for-like revenues, and failed attempts to turn around the business through alternative means.
The company currently operates more than 440 football pitches across 49 sites in the UK, Ireland and the Netherlands.
It directly employs over 580 people at its sites and head office, and has contracts with a number of sports coaches and referees across all locations.
The directors have now identified 13 sites for closure, but it is anticipated that the sites scheduled for shutting will remain open until at least the end of January 2019.
“Today’s positive news means we are one step closer to restructuring Powerleague with the necessary investment," said Powerleague CEO Christian Rose.
“These significant changes are essential to a sustainable future for Powerleague. The CVA is our last chance to rescue the company, and I am absolutely committed to our long-term turnaround plan.”
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