On 14 June, 2022, acting on advice from insolvency practitioners PKF GM, the directors of Pluscrates Ltd proposed a Company Voluntary Arrangement (CVA) in satisfaction of its debts to creditors.

At a creditors meeting on 4 July, Joint Supervisor, Stephen Goderski of PKF GM, recorded that 80% of creditors supported the proposal and the CVA was approved.

Commenting on what the CVA means for the future of the business, one of Pluscrates’ Founders, John Mitchell said, “It would be disingenuous to say that it’s ‘business as usual’ and it would be disrespectful to those creditors that both approved the proposal yet were damaged by it to suggest so. Nevertheless, we are very much continuing to run what is a quality and sustainable business in much the same way that we did pre-covid. The coping strategies we put in place to deal with the pandemic have best served the interests not only of 80% of our creditors, but also our staff and 100% of our clients.”

During a sustained period of inactivity in commercial relocation, Pluscrates diverted resources and stepped up the development of its logistic brand, Plus UK Logistics. John Mitchell added, “Over-trading during 2021, more than doubling the size of the business between March and July, proved to be overwhelming, particularly during a period where staff and vehicle costs in the logistics sector were spiralling out of control.”

“We quickly recognised that we had gone way beyond the sweet spot in terms of sweating our assets and in the period August to December we largely succeeded in bringing the business back under control. Trading through 2022 has been profitable once again, though the legacy of debt from 2021 was a burden that we clearly couldn’t service. We are grateful to our creditors for helping us reduce our debts to a manageable level.”

Photo: Pluscrates’ Wembley depot.