- The retailer is in talks with its lender after defaulting on rent payments
- Store Twenty One made a CVA deal last year but is still struggling to meet payments
- The retailer would put 1,000 jobs at risk if its CVA fails
Store Twenty One is understood to be in talks with its lender over its quarterly rent payments, which could push the retailer into administration if unpaid.
The struggling fashion retailer is believed to be in negotiations with the State Bank of India after defaulting on rent payments.
According to The Telegraph, the retailer has apparently not yet broken the terms of its CVA, but a quarterly rent date at the end of this month could push it over the edge.
Store Twenty One shut 77 stores as a result of its CVA last July, while landlords for more than 80 of its remaining 202 stores were asked to accept monthly rents rather than quarterly instalments.
Despite these measures, the fashion retailer, which was acquired by Indian textile manufacturer Grabal Alok in 2007, is still struggling to meet rent demands.
The retailer hired Alix Partners to handle its CVA last year, and it is likely to be appointed as administrator if the CVA fails, putting 1,000 jobs at risk.
Landlords outside of the quarterly rent arrangement have previously complained about Store Twenty One struggling to meet payments, and the retailer was accused of failing to pay staff wages in August last year.