Black Country jobs under threat in Store Twenty One rescue deal
A rescue plan for budget fashion chain Store Twenty One will see hundreds of jobs lost and nearly 80 stores closed.
But around 1,200 jobs will be saved in a deal ironed out between the store chain's owner, Indian textiles group Grabal Alok, and its creditors.
Store Twenty One is based in Solihull and has stores across the Black Country and the wider West Midlands.
More than 500 jobs could be threatened by Store Twenty One's agreement to close 77 shops over the next three months as part of the deal.
Store Twenty One has secured a Company Voluntary Arrangement, CVA – a deal to rescue the company from insolvency – with its shop landlords.
It allows the company to reduce the amount of rent it pays on more than 100 stores it will keep operating.
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."
It is not clear yet which stores will be closed and which will stay open.
Store Twenty One has branches in Bloxwich High Street, Dudley's Trident Centre, The Moor Centre in Brierley Hill, Brownhills High Street and Bearwood Road in Smethwick, as well as another nine in and around Birmingham.
AlixPartners, a global business advisory firm, and national law firm Shoosmiths both advised Grabal Alok on restructuring options available for Store Twenty One, as the loss-making business soughts to remain competitive in the current "challenging" retail environment.
The CVA was agreed with a creditors at a meeting last week, backed by almost 90 per cent of the creditors who voted.
James Keates, restructuring partner at Shoosmiths, said it was a 'complex arrangement' but "in our view was in the interests of all parties concerned. As a result the business is healthier and more than a thousand jobs have been preserved."
The main objective of the CVA was to rationalise its property leases.
