Blue Inc creditors vote through restructuring deal
Creditors of struggling retail chain Blue Inc have voted through a restructuring deal that is likely to see a number of store closures.
The company instructed Begbies Traynor to undertake a company voluntary arrangement (CVA), a process that allows it to have its rents reduced and to jettison underperforming stores.
Begbies did not disclose how many stores will close as part of the CVA, or how many jobs will be lost, but it is thought that over 30 shops are earmarked for closure.
Blue Inc, which has 127 outlets, is struggling under losses and is required to make debt repayments, as well as fork out for a hefty rent bill.
The CVA proposal put forward by the chain's owners received support from over 80% of voting creditors, including Blue Inc's landlords and lenders.
Begbies said in a statement: "The approval of the CVA enables the company to continue with its wider organisational restructuring, and secures significant employment within the UK.
"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."
Alongside the CVA, the retailer also plans to drive further savings and shore up its capital base by outsourcing its warehouse and logistics operations.