High street chain Store Twenty One has proposed a significant restructure of the company, making it the latest retailer working to avoid falling into administration.
Executives at the budget fashion chain, owned by Indian manufacturing giant Alok Group, have tabled a company voluntary arrangement (CVA) – which will see a slashing of its rent bill and possibly closing more unprofitable stores.
Restructuring experts AlixPartners were tasked with finding a lifeline for the firm.
"We have been working closely with the directors of Store Twenty One for a number of weeks to consider options for the business and to chart a course for future success,” AlixPartners’ Peter Saville said.
"After careful consideration the directors have taken today's decisions as these represent the best option in terms of preserving jobs and value within the group.
"Our focus now is on putting the restructuring plan into action by working closely with the management team and all other stakeholders in order to position the business to succeed in what is clearly an extremely competitive UK retail environment."
The news comes after it was first revealed at the beginning of June that the Store Twenty One would fall into administration at a court hearing on August 11 if a solution could not be found to save it.
Store Twenty One closed 10 loss-making stores and opened 38 new sites in the last financial year between 2014 and 2015.
The troubles facing the retailer come amid a tough time on the high street with more than 12,000 jobs at risk after the collapse of BHS and Austin Reed.
At present, Store Twenty One operates 202 stores and employs more than 1000 people across the UK.