Mothercare and Carluccio’s have become the latest in an increasingly long line of high street names to propose Company Voluntary Arrangements (CVAs) involving significant site closures and rent reductions.
Failing businesses don’t have a monopoly on restructuring. For sensible and forward-thinking MDs, to restructure is not a sign of failure at all, but an indication that they are thinking about how best to prepare the company for the future.
British online fashion store ASOS achieved a 27 per cent sales rise in the UK in the four months ended 30 June, outstripping the overall international sales growth of 16 per cent. By contrast, US firm American Apparel has embarked on a $30m cost-cutting programme.
Steve Easterbrook took the top spot at McDonald's as president and CEO in March, and the British boss has now revealed a plan to “reset and turn around” the global business in order to improve falling financials.
Business owners across the country are being forced to face some pretty tough decisions as the economic onslaught shows few signs of improving anytime soon.