Store Twenty One granted 2 weeks to find funds to escape administration

1357
Store Twenty One

Discount retailer Store Twenty One has been granted a further two weeks to raise the money needed to prevent it falling into administration.

The company filed company voluntary agreement (CVA) last July, which saw 77 stores close.

Eighty of the remaining 202 stores switched form a quarterly rent scheme to a monthly rent scheme, but in April it was handed a winding up notice by the HMRC for failing to make payments.

Many staff members have also alleged that they haven’t been receiving wages on time, and that their pensions had not been paid in months.

Last month Store Twenty One filed a notice to appoint administrators putting around 1000 jobs at risk.

READ MORE: Store Twenty One inches away from collapse

Yesterday the HMRC and creditor State Bank of India granted the retailer a stay of execution allowing it further time to raise needed funds.

In a rush to raise funds its owner Alok Industries has sold its head office and warehouse.

“The administration order hearing was adjourned until 9th June to enable the company more time to continue its refinancing discussions,” the retailer’s adviser Alix Partners said.

“The adjournment was made with the consent of the petitioning creditor and the company’s lender.”

Click here to sign up to Retail Gazette’s free daily email newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here