Store Twenty One owner tables proposal for company voluntary arrangement
The owner of budget fashion chain Store Twenty One has proposed a radical restructure of the retailer as it scrambles to avoid administration.
Indian manufacturing giant Alok Group has tabled a proposal for a company voluntary arrangement (CVA), which is understood to involve slashing its rent bill and potentially closing unprofitable stores.
Store Twenty One operates 202 stores and employs more than 1,000 people across the UK.
Restructuring experts AlixPartners have been tasked with finding a lifeline for the firm, which continues to grapple with tough trading on the high street.
Peter Saville, of AlixPartners, said: "We have been working closely with the directors of Store Twenty One for a number of weeks to consider options for the business and to chart a course for future success.
"After careful consideration the directors have taken today's decisions as these represent the best option in terms of preserving jobs and value within the group.
"Our focus now is on putting the restructuring plan into action by working closely with the management team and all other stakeholders in order to position the business to succeed in what is clearly an extremely competitive UK retail environment."
AlixPartners have been made nominees of a CVA for Grabal Alok (UK) Ltd, which trades as Store Twenty One, and appointed joint administrators of property subsidiaries Be-Wise and QS PLC within the Store Twenty One Group.
It was revealed at the beginning of June that the Store Twenty One would fall into administration at a court hearing on August 11 if a solution could not be found for the business.
The troubles facing the retailer come amid a bloodbath on the high street with more than 12,000 jobs at risk following the collapse of BHS and Austin Reed.