There is no statutory requirement for the Directors to advise their customers that the company has entered into a Company Voluntary Arrangement. However, it may be in the Company’s interest that the Directors are upfront with their customers for the important reason that rumors may spread in the industry which would lead to customers quickly losing faith in the business.
The Directors can explain to customers that the CVA will enable them to focus on the service they provide rather than concerning themselves with the company’s financial position. Loyal customers may look to help the company for example by ensuring prompt or early payment for goods and/or services provided.
There is no reason why the Company Voluntary Arrangement will prevent a company from delivering a reliable service. There is therefore no reason why customers would walk away from a company that has chosen the CVA route. Whether the company decides to inform the customers is the decision of the Directors.