Shoe group Stylo, which runs the shoe chains, will be put into administration if the company’s creditors are unable to approve the proposals of the CVA at the meeting of creditors on Thursday.
Stylo’s subsidiaries Stylo Barratt Shoes, Stylo Barratt Properties, Priceless Shoes Properties, Barratts Shoes Properties, and Comfort Shoes were all placed into administration last month. Stylo has filed a notice of intention to appoint administrators today as if the CVA is not agreed it will effectively cease to exist.
Joint administrators Neville Kahn, Daniel Butters and Lee Manning of Deloitte were appointed for the companies’ subsidiaries last month and in a statement today Stylo said at present they were “unable to ascertain the outcome of the creditors' and landlords' votes, which will ultimately determine the approval of these proposals.”
The administrators are also reviewing options for the businesses if the CVA is not approved, which could include a fire sale of parts or all of the trade and assets of the companies, leading to a likely closure of stores.
Stylo chairman and chief executive Michael Ziff said: "We firmly believe that the CVAs represent a far better outcome for Stylo, our employees, our pension fund, our creditors and landlords than the alternative scenarios.
"The benefits for landlords from this scheme are that they will have a vote on the CVAs in proportion to their rent roll, Stylo will enter discussions with each landlord regarding their property, rent will be guaranteed for six months on all properties and landlords will be able to find new tenants for each site with Stylo having the right to match the rent," said Ziff.
He added: "A vote against the CVAs will threaten the employment of some 5,400 people. The alternatives are either a rapid sale of the business or liquidation of assets, both of which will result in the immediate closure of a significant number of stores.”
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