Widen losses: what lied behind Store Twenty One’s delayed release

Pre-tax losses have gone up to 10 million pounds at Store Twenty One. The troubled fashion retailer has significantly delayed its financial release among reports of a potential administration.

Market sources have recently pointed out that the struggling chain might appoint administrators following the company’s voluntary arrangement (CVA) announced as part of a restructure about a year ago.

Financial results for the business revealed pre-tax losses widened to 9.3 million pounds in the year to March, 26 2016 compared to 6.7 million pounds a year earlier, informs ‘Insider Media’. Turnover went down as well, declining to 89.4 million pounds.

Last summer, 90 percent of Store Twenty One's creditors approved a restructuring plan for the business, which went through a CVA. Back then, the fashion chain had about 222 branches across the UK, having to close 93 loss-making stores in a matter of months.

A statement filed with the accounts said a "considerable amount of work" has gone into enhancing the "value proposition" of the business. The retailer has worked on its marketing strategy and increased the level of buying via its offices in China, India and Bangladesh.

The statement, signed off in February this year and recently filed at Companies House, added that directors are "confident of achieving profitability targets in 2016/17".