// TM Lewin is seeking substantial rent cuts from landlords
// The new owners of the retailer have warned landlords they may shut down most stores if the cuts are not granted
// TM Lewin was bought last month by SCP Private Equity for an undisclosed sum
TM Lewin’s new owners have reportedly warned landlords that most stores will shut down if rent cuts are not granted, less than a month after it acquired the menswear retailer.
According to The Telegraph, SCP Private Equity – which bought TM Lewin last month for an undisclosed sum – has hired commercial property consultants from Cedar Dean to handle negotiations.
The advisors reportedly told landlords that TM Lewin would be put into pre-pack administration unless they agree on significant rent cuts.
READ MORE:
- TM Lewin snapped up by new private equity owner
- Charles Tyrwhitt mulls TM Lewin takeover
- TM Lewin the latest to seek new buyer amid coronavirus crisis
A pre-pack administration is an insolvency process whereby a deal to buy – or buy back – parts of a business is pre-arranged and sold immediately to a connected party, allowing for the shedding most liabilities when it formally files for administration.
The Telegraph reported that SCP plans to hold on to a handful of shops but will decide locations depending on how negotiations with landlords pan out.
TM Lewin trades from 66 stores across the UK.
SCP bought the business from Bain Capital via its subsidiary acquisition vehicle Torque Brands, with plans to include it in a new stable of British brands.
SCP’s executive team includes Simber founder James Cox, former Harrods managing director Paul Taylor and ex-Asda chief executive Allan Leighton.
The sale was handled by corporate finance firm Alantra and came almost a month after TM Lewin asked for bidders to put their offers forward.
At one stage, rival menswear retailer Charles Tyrwhitt was reportedly mulling a takeover.
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