Acorn Lighting Services Ltd (Company number 03724243) have entered a legal voluntary arrangement (CVA) to pay off debts of over £1/4 million.
A corporate voluntary arrangement (CVA) is when a company proposes an agreement with its creditors. This arrangement must be approved by the court, in which the company has formally agreed terms with its creditors for the settlement of its debts
Nearly all the money owed is to the the HM Revenue and Customs, with a 52 monthly payment plan with varying monthly payments from £3,000 to £10,000 per month, to pay back the £245,340 owed.
Harrogate Borough Council contribute to the the overall costs of the lights and have a contract with Christmas Lights Company, they sub-contract all the installation to Acorn Lighting Services Ltd.
Further fundraising is made by the Harrogate at Christmas Group.
The business will now continue to operate, but under constraints such as not being able to pay dividends, sell the business, sell any company assets or increase remuneration – this means that the lights will remain in Harrogate and Knaresborough.