Upmarket interiors brand Oka is planning to launch a company voluntary arrangement in a bid to stave off insolvency.
The retailer went to court on Friday (14 June) to seek approval for a CVA that would involve closing one of its 13 stores, Sky News reported.
The proposal, which requires the approval of creditors, come after founder Lady Astor – the mother-in-law of David Cameron – stepped down from the company’s board.
She is understood to have retained a financial interest in Oka, although it is majority owned by Italian private equity firm InvestIndustrial.
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As part of the CVA plans, a distribution centre and one of the retailer’s head offices will be affected, with up to 40 people expected to lose their jobs. Oka employs almost 250 people in the UK.
InvestIndustrial has committed to injecting several million pounds into Oka if the CVA is approved.
Last week, the furniture retailer initiated Chapter 7 bankruptcy proceedings for its US operations. It will close its three stores in the country.
Teneo partner Gavin Maher told Sky News: “The CVA forms part of a wider restructuring of the Oka group, which is supported by the company’s shareholder who has agreed to provide further funding to the company totalling £4m if the CVA is approved.”
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