The Fosters store chain is contacting companies to whom they owe money, to request a company voluntary arrangement or CVA in connection with their debt.
A CVA is a voluntary agreement in which creditors accept that the company cannot meet its debts, agree to accept a lower amount, and write off the remainder of what is owed.
In the case of the Fosters group, it is understood that creditors will receive 2p for every pound owed, whereas if the company were to go into liquidation the amount would be even lower.
In addition to the Fosters stores at Strand Road and the Richmond Centre, the Fosters Group also includes the Glendennings store on Strand Road. All of the stores in the group have ceased trading.
The proposal has been filed at the Royal Courts of Justice and creditors will vote on the CVA in a week’s time, on next Monday, July 8.
(Photo © Bernard Ward www.derryphotos.com)