Store Twenty One is on the brink of collapse after it lodged a notice of intention to appoint administrators due to defaulting on rent payments.
As reported by Retail Week, about 1000 jobs are up in the air as the fashion retail chain ups the ante on securing additional investment to save the business.
Store Twenty One’s directors have now taken steps to appoint administrators, which protects the business from action by creditors.
A hearing date reportedly set for May 26 will determine the retailer’s future.
The news comes after Store Twenty One first made a company voluntary agreement (CVA) deal last July, which resulted in the closure of 77 stores, while more than 80 of its remaining 202 stores switched to a monthly rent scheme rather than quarterly instalments.
According to documents seen by Retail Week, Store Twenty One fell behind on those monthly payments and was given a winding up petition by HMRC on April 12 due to unpaid taxes.
In addition, in August last year the high street chain was accused of failing to pay wages.
Owned by Indian textile manufacturer Grabal Alok, Store Twenty One hired Alix Partners to handle its CVA last year – and in March they were reportedly in talks with its lender after struggling to meet rent payments.
Both Store Twenty One and Alix Partners have not yet provided comment.
Click here to sign up to Retail Gazette‘s free daily email newsletter
