West Midlands retailer agrees CVA to prevent administration

SHIRLEY-based national retailer Store Twenty One has agreed to enter into a company restructuring to prevent it from becoming the latest high street fashion business to slide into administration.

The company, owned by Indian group Alok, has entered into a company voluntary arrangement (CVA).

The move could see a number of unprofitable stores having to close in a move to reduce costs.

Restructuring firm AlixPartners has been appointed to advise the firm through the arrangements.

The firm has been working closely with the budget fashion chain for a number of weeks outlining the various options open to it. It had been up against a tight deadline and had until August 11 to stave off administration.

The CVA is considered the best option to enable the firm to continue trading.

AlixPartners will continue to work with the group and other stakeholders to try and ensure the business remains competitive in a tough retail environment, which has already seen the demise of BHS and Austin Reed.

The group currently operates 202 stores around the country and employs more than 1,000 people.