Updated: 29th June 2016
Plans for a Company Voluntary Arrangement (CVA) have been put together on behalf of the fashion retailer Store Twenty One as the business looks to significantly reduce its outgoings and avoid collapse.
The retailer is aiming to implement a broad restructuring effort, with the CVA designed in large part to cut its rent bills and establish a route towards financial sustainability for the business.
With a total of 202 outlets and roughly 1,000 employees in the UK, hopes are that Store Twenty One will indeed be rescued and remain viable in the coming months but reports suggest it could soon be heading for administration.
Were the company to enter administration it would follow British Home Stores (BHS) and Austin Reed, two of the UK’s best known retailers which have both succumbed to financial crises in recent months.
“We have been working closely with the directors of Store Twenty One for a number of weeks to consider options for the business and to chart a course for future success,” said Peter Saville, whose company has been appointed to help turn the business around.
“After careful consideration the directors have taken today’s decisions as these represent the best option in terms of preserving jobs and value within the group,” he said.
“Our focus now is on putting the restructuring plan into action by working closely with the management team and all other stakeholders in order to position the business to succeed in what is clearly an extremely competitive UK retail environment.”
Store Twenty One is owned by an Indian textiles business called the Alok Group and is based in Solihull in the West Midlands.
The business began trading as Store Twenty One in the mid-2000s after it was acquired by Alok and after a restructuring process saw it close a total of around 140 shops in the UK.
Store Twenty One is generally positioned as being a low-cost fashion retailer but it has struggled in recent years to compete with the likes of Primark, which is now well-established as a major force in what is a highly competitive industry sector. We have an extensive network of 86 offices offering confidential director support across the UK.