Blue Inc’s company voluntary arrangement (CVA) has been “unanimously” approved by creditors following a crunch vote.
The embattled menswear chain’s proposal to cut rents and shutter stores received “strong support” from more than 80% of the creditors who voted, the retailer said today.
As previously reported, Blue Inc filed the CVA earlier this month after failing to find the £3m of additional capital it needed to pay for additional stock and service its debts.
The CVA documentation revealed that the retailer wanted to close 33 of its 127 shops as it takes drastic measures in a bid to stay afloat.
Under the terms of the CVA, creditors would be paid back 36p in the pound.
The business said the approval of the CVA “enables the company to continue with its wider organisational restructuring” and “secures significant employment within the UK.”
Blue Inc added in its statement: “The directors are appreciative of the overwhelming support shown by key stakeholders, including staff, suppliers, landlords and secured lenders, and are committed to continuing to drive the business forward to deliver long-term profitability and growth.”
The vote comes more than a year after Blue Inc put its subsidiary A Levy into administration to close 76 stores and shed 500 jobs.
It then bought back part of the business, enabling it to continue trading.