‘Around 80’ stores under threat despite retailer’s CVA

CREDITORS have voted overwhelmingly in favour of plans to prevent retail chain Store Twenty One from potential closure.
The Solihull-headquartered business has completed a CVA ahead of an August 11 deadline that would have forced it into administration.
However the proposals are expected to require around 80 of its 202 stores to close, which will significantly reduce its 1,000-strong workforce.
Store Twenty One is the trading name of Grabal Alok (UK), which is part of an Indian textiles group which bought the chain then known as QS in 2007.
Law firm Shoosmiths and advisers AlixPartners worked with Grabal Alok (UK) on restructuring options available. Peter Saville, Ryan Grant and Anne O’Keefe of AlixPartners will now become the supervisors of the CVA and monitor the implementation of the proposal.
The plan is to “rationalise the company’s leasehold and operational obligations and to restore the viability of the company’s business and balance sheet, to assist in a return to profitability”.
This will see rents renegotiated and a large number of stores closed.
Pravin Soni, director of Store Twenty One, said: “We would like to thank all of our employees, creditors and other stakeholders for their support, in what we know has been a very difficult time.
“The directors and management team now look forward to focussing on the future of Store Twenty One and working with everyone to make this business a success for many years to come.”
The value chain began life as Quality Seconds, and then QS, but was rebranded as Store Twenty One when it was acquired by leading Indian textiles group Grabal Alok in 2007.

Click here to sign up to receive our new South West business news...
Close