Creditors rejected a proposed Company Voluntary Arrangement proposed by The Food Retailer Operations Limited yesterday. The company was formerly part of Co-Op Group having formerly traded as Somerfield Stores Limited. The Co-Op had transferred 497 stores to another Co-Op group company in 2015. Between October 2015 and February 2016 the Co-Op had then taken £500 million out of the company before selling its interest to Hilco.
The company was unable to continue trading carrying £100 million worth of unsecured creditors. The creditors, assisted by the TP Insolvency Team, rejected the CVA Proposal which now allows for the claims against the Co-Op and its directors to be pursued.