Office Outlet’s company voluntary arrangement (CVA) has been approved by shareholders, set to see 20 of its stores get a three-year rent holiday.
The CVA, which was first proposed in August, has been touted as one of the most extreme most extreme examples of the controversial insolvency procedure.
Under the CVA four of its 95 stores are set to close, while rents will be reduced on the rest of its estate, including free rent for three years on 20 of its stores.
“The operational restructuring that has already taken place at Office Outlet has seen a big improvement, however the challenging retail environment has left us with no option other than to restructure our fixed costs so we are able to look to the future” chief executive Chris Yates said.
“This CVA will now give greater security for our staff, suppliers, landlords, customers and members – and we are confident our company will begin to take excellent shape after this process has finished.”
Retailers have been criticised for their rapid uptake of CVAs, which put pressure on landlords and creditors to accept their terms, in order for retailers to stay afloat.
The CVA mechanisms require the support of creditors, but are often voted in on the basis that they are preferable to bankruptcy.