High street chain Store Twenty One is the latest in a number of retailers looking for a lifeline to avoid falling into administration. The budget chain is due to have an administrators‘ hearing in eight weeks‘ time.
Executives at the business, owned by Indian manufacturing giant Alok Group are exploring all options to save the firm, including attracting fresh investment, a possible sale, a debt for equity swap or a Company Voluntary Agreement (CVA).
Restructuring business AlixPartners has been appointed to help the retailer on its quest for a lifeline as it continues to struggle with poor sales on the high street.
Store Twenty One closed 10 loss-making stores and opened 38 new sites in the last financial year between 2014 and 2015.
The chain currently has around 200 stores and employs a workforce of over 1,000 staff.
Its latest results revealed a pre-tax loss of £6.7m in the year to 28 March, compared to a greater loss of £9.9m the previous year. The retailer did, however, see a turnover of £92.2m, up from £89.4m in 2014.
If a solution cannot be found, the retailer will fall into administration on 11 August 2016