Bevan Brittan LLP has advised world-class leather manufacturer Pittards plc on a complex Company Voluntary Agreement (CVA) and fundraising exercise to save the company from insolvency arising from a £32 million deficit in the company pension scheme.

Staff at the 180 year old company, within headquarters in Yeovil were informed on Friday afternoon that shareholders voted in favour of a share reorganisation to secure the future of the company saving 240 jobs.

Pittards, which is famous for making leather for football boots, golf shoes and gloves addressed the problem of its ballooning £32 million pension shortfall by looking at ways to avoid going into administration.

Bevan Brittan restructuring specialist Gordon Bon and pensions partner Gary Delderfield advised Pittards on its CVA and share capital reorganisation to enable its pension schemes to be referred to the Pension Protection Fund (PPF) assessment and allowing other creditors to be paid in full.

Completion of the arrangements with the PPF remain conditional on a number of legal formalities, which are expected to be fulfilled during the week commencing 15 May.

Gordon Bon commented: “We are delighted to have help save Pittards from administration. They are a long-standing client and the UK's leading specialist technologically advanced leather manufacturers exporting almost 80% of its production.

This truly is an innovative approach to pension fund problems. We used our existing skills and knowledge from acting for the Pension Protection Fund to devise a number of interlocking CVAs and investment agreements. A CVA combined with additional investment could be a model for other companies facing pension fund deficit problems.“