Fashion chain Store Twenty One is set to shut down more than 80 UK-based stores under its company voluntary arrangement (CVA).
The move would reduce its total store count from 202 stores to 120.
More than 86% of its creditors voted in favour of the CVA proposal at a meeting held on 15 July, sources familiar with the matter told Drapers.
AlixPartners was appointed by Grabal Alok (UK), which trades as Store Twenty One, as nominees for its CVA in June.
AlixPartners spokeswoman was quoted by the publication as saying: “The CVA has been approved with the support of almost 90% of creditors.
“It is too early to go into specific details regarding the revised shape of the business, as this depends on the outcome of discussions with the various stakeholders.”
The company proposed CVA after taking a full-fledged review of Store Twenty One’s operating model and weighing the restructuring options.
AlixPartners said: “(The aim is to) rationalise the company’s leasehold and operational obligations and restore the viability of the company’s business and balance sheet, to assist in a return to profitability.”
Value retailer Pep&Co may acquire some of its Store Twenty One stores, a source told the fashion business news publisher.
He said: “They put the CVA down to the tough trading environment but Store Twenty One has too many shops and the product isn’t right.
“The guys running it are old school and it just didn’t move with the times. It will be very difficult to turn that business around.
”Pep&Co might take a few stores in smaller neighbourhood towns, as it is a similar family value business.”
Meanwhile, the loss-making retailer has convinced landlords for 17 stores to reduce rent by 25%, The Guardian reported.
It has also persuaded landlords for more than 80 other stores to collect rents monthly in an effort to prevent administration.