Store Twenty One admits defeat with the closure of remaining stores

Multiple efforts to save the financially unstable, Store Twenty One were halted this morning after the company entered into compulsory liquidation.

The budget fashion chain’s remaining 122 stores were closed on Friday, resulting in the loss of 900 retail jobs.

News of Store Twenty One’s compulsory liquidation comes as no surprise, as the company has come close to administration over the past few years. An attempted restructure last year which saw a company voluntary arrangement (CVA) placed, resulted in the closure of 93 loss-making stores.

The retailer has struggled to withstand competition from growing budget retailers like Primark as well as online fast fashion competitors. The company’s turnover has declined from 95 million to 57 million pounds along with sustained losses in the past few years.

In April 2017, HM Revenue & Customs issued a winding up notice due to unpaid tax - placing the company in their final days, despite their attempt at raising the owed funds.

“We are now in the process of conducting an orderly wind-down and would welcome contact from any interested parties who may wish to purchase assets of the company,” Bonney continued.

Store Twenty One, owned by Indian textiles company Alok Group, first started out in the 1930s manufacturing goods for retailers such as Marks & Spencer, subsequently opening their own stores, rebranding to QS. In 1990, QS floated on the London Stock Exchange, acquiring sister chain Bewise.

Store Twenty One’s fall into compulsory liquidation is a warning sign of tougher times ahead. Many years of success are hard to retain in the current economy - along with significant changes to the traditional retail industry, which sees pressure from online brands and retailers. Store Twenty One is not the first retailer to perish and is certainly not the last, in this ever changing industry.

Photo courtesy of Store Twenty One website