The Official Receiver has been appointed as liquidator at the discount clothing and homeware retail business Store Twenty One after it was wound up by the High Court on July 10th.
In excess of a hundred Store Twenty One outlets had been in operation around the UK until recently days but those facilities are now been closed down and employees are being advised on their position with regard to potential redundancy payments.
Store Twenty One is the trading name of a company called Grabal Alok (UK), whose financial woes in recent months and years saw it enter into a Company Voluntary Arrangement (CVA) in July 2016.
The failure of that rescue effort has seen the Insolvency Service confirm that the Official Receiver has been appointed to liquidate the business.
Store Twenty One was headquartered in Solihull in the West Midlands but had stores on high streets across Britain.
It was acquired by Grabal Alok, an India-based textile business, in 2007, after having undertaken an expansion effort that significantly increased its presence in various parts of the UK.
By May 2017, it was being reported that Store Twenty One was on the brink of collapse after its remaining financial backers withdrew their support for its operations.
More than a thousand people were understood to be at risk of losing their jobs as a result of the company’s failure.
Recent efforts to secure fresh financial backing that might have saved and rescued the retailer from its position of insolvency have proven unsuccessful.
Landlords and suppliers of the business were said to have been left unpaid even after new terms of payment were put in place and dozens of loss-making stores were closed as a result of the CVA deal agreed in July 2016.
At various times, Store Twenty One is known to have been in the position of owing HMRC several million pounds in unpaid taxes.
Filings with Companies House show that the business saw its pre-tax losses increase from around £6.6 million in the year to 2015 to roughly £9.3 million for the following 12 months.
Creditors left out of pocket as a result of Store Twenty One’s collapse and liquidation have been advised to contact the Official Receiver and to detail what monies they are owed via email. With 78 offices stretching from Inverness down to Exeter, Real Business Rescue can offer unparalleled director advice across the UK.