Hopes of property deal postpones retailer’s administration
Beleagured retailer Store Twenty One has been given two more weeks to raise funds and avoid administration after its Solihull head office was subject to an offer of £3.2m.
Around 1,000 jobs are at risk at the clothing retailer, which entered a company voluntary arrangement (CVA) last year.
Problems returned earlier this year and a winding-up order was presented by HM Revenue and Customs in April 12.
The company filed a notice of intention to appoint administrators, which is a legal move that prevents creditors taking further action for a short period while it seeks to resolve its problems.
Restructuring advisors Alix Partners confirmed the administration order hearing had been adjourned “to enable the company more time to continue its refinancing discussions”.
HMRC and Store Twenty One’s lender, State Bank of India, supported the adjournment.
Alok House, on Cranmore Industrial Estate, is a 122,000 sq ft building with two-thirds of the space being the warehouse.
Agents for Alok House are marketing the building with vacant possession, although Store Twenty One’s owner, Grabal Alok (UK) “would be prepared to enter into discussions with interested parties in respect of taking a lease of part”.
