1,000 jobs at risk as administration looms for retailer
Around 1,000 jobs are at risk after clothing retailer Store Twenty One moved to the brink of administration.
The Solihull-based retailer has struggled for more than a year, when it was forced into a company voluntary arrangement (CVA).
Problems returned earlier this year and it was reported to be in talks with its lenders, State Bank of India, after struggling to meet rent payments.
A winding-up order was presented by HM Revenue and Customs on April 12, according to trade publication Retail Week, and the company has now filed a notice of intention to appoint administrators.
This move prevents further legal action for a short period while it seeks to resolve its cash crisis.
Store Twenty One can trace its roots back to 1932, later becoming a listed company before going private in 2002. It fell into administration in 2006 and was bought by Indian textile manufacturer Grabal Arok the following year, but has failed to make a profit since.
The CVA deal last July allowed the retailer to shut 77 shops and an agreement with landlords for 17 of its 202 stores to take a 25% rent cut. Landlords for more than 80 other stores were asked to accept monthly rents rather than quarterly payments.
