Creditors of fashion retailer the Austin Reed Group have voted overwhelmingly in favour of its proposed Company Voluntary Arrangement (CVA).
The two CVA proposals, for Country Casuals and Austin Reed, were supported by more than 95% of creditors. The CVAs are part of a broader operational restructuring, which includes an injection of funds from the group’s shareholders and further investment in its online offer.
The CVA will see the retailer close 26 Country Casual Stores and nine Austin Reed stores.
Austin Reed Group chief executive Nick Hollingworth said: “We are pleased that our creditors and landlords have recognised that this CVA represents the best way forward for the business and its stakeholders. This is an important step in implementing the actions following our strategic review.
“We would like to thank our landlords, our bankers Wells Fargo and our shareholders for their continued support. The group will now continue constructive dialogues with landlords to implement the CVA proposals.”
Deloitte will act as supervisor for the CVAs.