Helena-3DE purchase vehicles undergo CVA
Two companies acquired earlier this year by Helena Leisure from 3D Entertainment (3DE) have entered a company voluntary arrangement (CVA) - a form of business recovery and alternative to administration.
M&C Report understands that the size of the portfolio of clubs operated within the two companies - dubbed CFG Leisure 1 and CFG Leisure 2 - will be reduced from 28 to 16 venues as a result of the CVA.
The 28 marginal and loss-making venues were sold by 3DE in March for what was described at the time as a "nominal consideration".
It is not clear what impact the CVA will have on 3DE, which is 49%-owned by Luminar, Britain's biggest nightclub group.
3DE, led by David Crabtree, could be obligated to take back some of the 12 discarded outlets.
A source close to the situation said that "a very small number - one or two - could come back to 3DE, but it is not clear".
The terms of the CVA process - whereby creditors agree repayment terms for some or all of a company's outstanding debts - have been approved by the overwhelming majority of creditors. It will therefore be rubber-stamped within the next seven days.
Martin King, head of Helena Leisure, which operates the two companies, told M&C Report: "We've managed to clean it all up and will now have a profitable business going forward."
He said that about £1m had been invested in the businesses so far and that more would be made available for capital expenditure projects.
King, who used to work at Luminar, also runs Eminence Leisure, a supplier of entertainment acts to nightclubs across the country.
3DE declined to comment.
