This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2016/jul/19/store-twenty-one-axe-hundreds-jobs-amid-shop-closures
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Store Twenty One to axe hundreds of jobs as it shuts nearly 80 shops | |
| (about 2 hours later) | |
| Hundreds of workers are to lose their jobs as the lossmaking fashion chain Store Twenty One prepares to close nearly 80 shops as part of a rescue deal with landlords. | Hundreds of workers are to lose their jobs as the lossmaking fashion chain Store Twenty One prepares to close nearly 80 shops as part of a rescue deal with landlords. |
| The retailer persuaded landlords for 17 of its 202 stores to take a 25% rent cut and landlords for more than 80 other stores to accept monthly rents in a bid to fend off administration. | The retailer persuaded landlords for 17 of its 202 stores to take a 25% rent cut and landlords for more than 80 other stores to accept monthly rents in a bid to fend off administration. |
| But 77 stores will shut within three months under a company voluntary arrangement (CVA), a form of insolvency, accepted by creditors late last week. Store Twenty One’s owner, the Indian group Grabal Alok, said the outlets were unviable and did not have “any prospect of being restored to viability even if a reduction in the amount of rent is obtained”. | But 77 stores will shut within three months under a company voluntary arrangement (CVA), a form of insolvency, accepted by creditors late last week. Store Twenty One’s owner, the Indian group Grabal Alok, said the outlets were unviable and did not have “any prospect of being restored to viability even if a reduction in the amount of rent is obtained”. |
| The group’s Bewise and QS businesses have already called in administrators leading to the closure of 17 stores previously leased by Store Twenty One, and a further 25 are at risk. | The group’s Bewise and QS businesses have already called in administrators leading to the closure of 17 stores previously leased by Store Twenty One, and a further 25 are at risk. |
| Pravin Soni, the 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 focusing on the future of Store Twenty One and working with everyone to make this business a success for many years to come.” | Pravin Soni, the 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 focusing on the future of Store Twenty One and working with everyone to make this business a success for many years to come.” |
| Documents provided to creditors ahead of the CVA reveal that Store Twenty One has made a loss every year since Alok acquired it in 2007. | Documents provided to creditors ahead of the CVA reveal that Store Twenty One has made a loss every year since Alok acquired it in 2007. |
| Related: The way we shop now: the revolution in British spending habits | Related: The way we shop now: the revolution in British spending habits |
| The company said it would have fallen into administration or liquidation if landlords had not agreed the CVA as Store Twenty One owed more than £2.6m in tax to HMRC and was being pursued for unpaid business rates by several local authorities. | The company said it would have fallen into administration or liquidation if landlords had not agreed the CVA as Store Twenty One owed more than £2.6m in tax to HMRC and was being pursued for unpaid business rates by several local authorities. |
| Store Twenty One blamed its problems on the economic downturn, which it said had “a significant adverse impact” on trading performance. It also said increased competition from online retailers, supermarkets and discounters including Primark had hit the business. | Store Twenty One blamed its problems on the economic downturn, which it said had “a significant adverse impact” on trading performance. It also said increased competition from online retailers, supermarkets and discounters including Primark had hit the business. |
| Store Twenty One started in the 1930s as a manufacturer supplying retailers including Marks & Spencer. It subsequently opened its own shops, selling seconds, but changed tack in the 1980s when it rebranded the chain as QS. | Store Twenty One started in the 1930s as a manufacturer supplying retailers including Marks & Spencer. It subsequently opened its own shops, selling seconds, but changed tack in the 1980s when it rebranded the chain as QS. |
| In 1990 it floated on the London Stock Exchange and went on to acquire Bewise. It was taken private in 2002 and sold again, to Alok, five years later. The retailer, based in Solihull in the West Midlands, was rebranded again as Store Twenty One nearly a decade ago after a restructuring that involved the closure of 140 shops. | In 1990 it floated on the London Stock Exchange and went on to acquire Bewise. It was taken private in 2002 and sold again, to Alok, five years later. The retailer, based in Solihull in the West Midlands, was rebranded again as Store Twenty One nearly a decade ago after a restructuring that involved the closure of 140 shops. |