// Majority of TM Lewin’s 66 stores could close down if it goes ahead with a pre-pack administration
// SCP Private Equity appointed restructuring experts a month after it bought TM Lewin for an undisclosed sum
The new owner of TM Lewin has reportedly drafted in restructuring experts that could potentially lead to the closure of the majority of its 66 stores.
According to The Sunday Times, restructuring firm ReSolve was called in for the menswear retailer to make it a principally online brand with very few stores.
It’s thought that a pre-pack administration deal could be on the cards, a move that could place hundreds of jobs at risk.
READ MORE:
- TM Lewin CEO resigns
- TM Lewin warns on shuttering stores if rent cuts unsuccessful
- TM Lewin snapped up by new private equity owner
SCP Private Equity, which bought TM Lewin last month for an undisclosed sum, had already hired commercial property consultants from Cedar Dean to handle negotiations with landlords with the aim of securing rent cuts.
The sale to SCP also saw TM Lewin chief executive Sven Gaede stepping down.
SCP bought the retailer 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.
A pre-pack administration is an insolvency process whereby a deal to buy – or for the owner to re-acquire – a business is pre-arranged and sold immediately to a connected party, allowing for the shedding most liabilities, such as store leases.
Other retailers which have been re-acquired by its owners via a pre-pack deal during the coronavirus pandemic include Quiz, Monsoon Accessorize and Go Outdoors.
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