Store Twenty One starts stores closures after voting for CVA

Ailing value fashion chain Store Twenty One will soon start announcing the first closures after the executives accepted a company voluntary agreement or CVA as the only viable solution to rescue the remaining profitable stores.

"After careful consideration the directors have taken the decisions as these represent the best option in terms of preserving jobs and value within the group,” summed up the plan administrators from Alix Partners.

“The CVA has been approved with the support of almost 90 percent 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,” said earlier this week a spokesperson from AlixPartners.

As pointed by market sources with knowledge in the matter, the CVA came in as the last resort for the ailing retailer, being the best way to preserve jobs and value within the group.

AlixPartners said the proposal would help the business to “remain competitive in today’s challenging retail environment”, reports ´Drapers.

The apparel retailer will get started with over eighty closures, taking therefore the total retail footprint from 202 to 120 stores.