Store Twenty One’s creditors have approved a company voluntary arrangement (CVA) that will result in nearly 80 store closures, it is believed.
A total of 77 of the fashion retailer’s stores will shut within three months under the terms of the CVA as it aims to avoid administration, according to the Guardian.
“Hundreds” of jobs are expected to be lost at the fashion chain as a result of the closures, it is thought.
The CVA was approved at a creditors’ meeting late last week, with nearly 90% of creditors voting in favour of the proposals.
A spokeswoman for Alix Partners, which is handling the CVA, declined to comment on store closures or job losses.
The chain, owned by Indian textiles group Grabal Alok since 2007, started life as Quality Seconds. It was rebranded when it was bought by the group.
“The level of votes in favour of the CVA, across all of the various creditor groups, demonstrates the strong relationships that the company has with all of its stakeholders”
Peter Saville, Alix Partners
Store Twenty One director Pravin Soni said: “The directors and management team now look forward to focusing on the future of Store Twenty One and working with everyone to make this business a success for many years to come.”
Peter Saville, managing director of Alix Partners turnaround and restructuring services practice, said: “The level of votes in favour of the CVA, across all of the various creditor groups, demonstrates the strong relationships that the company has with all of its stakeholders and the support that exists for the Store Twenty One business.”
Store Twenty One unveiled plans for a CVA last month. This is not the first time it has hit challenging times.
The retailer was in trouble three years ago when it sought rent reductions from landlords. It led to bailiffs visiting stores after the retailer failed to pay rent.