Stylo waits on rescue deal
SHOE group Stylo will find out later today if the rescue package to save its 5,400 staff and 385 stores will be approved.
The struggling Bradford-based group, which owns the Barratt and Priceless store chains, has put forward an innovative Company Voluntary Arrangement (CVA) to its creditors as an alternative to a pre-pack administration.
Under the scheme, being run by administrators Deloitte, landlords and creditors will be asked to renegotiate debts so the company can stay afloat.
Around 150 stores and 2,000 are likely to be lost if it is passed but Stylo chairman Michael Ziff said: “We firmly believe that the CVAs represent a far better outcome for Stylo, our employees, our pension fund, our creditors and landlords than the alternative scenarios.
“The benefits for landlords from this scheme are that they will have a vote on the CVAs in proportion to their rent roll, Stylo will enter discussions with each landlord
regarding their property, rent will be guaranteed for six months on all properties and landlords will be able to find new tenants for each site with Stylo having the right to match the rent.”
“A vote against the CVAs will threaten the employment of some 5,400 people. The alternatives are either a rapid sale of the business or liquidation of assets, both of which will result in the immediate closure of a significant number of stores,” he added.
The vote needs to be agreed by 75% of creditors at a meeting at London’s Queen Elizabeth Hall later today.
