// Baird Group launches CVA proposal that features 18 store closures and 262 job cuts
// The Baird Group is a licensee of Ben Sherman, Jeff Banks and Suit Direct, and has 47 stores and 87 concessions
// The CVA proposal will be put to a creditor vote on August 10
One of the licensees of menswear retailer Ben Sherman is reportedly mulling plans to close down more than a third of its stores as well as seek rent cuts with landlords.
According to the Financial Times, Baird Group – which is also a licensee of Jeff Banks and Suit Direct – has launched a CVA proposal and has kicked off negotiations with creditors.
The CVA includes plans to close down 18 standalone stores, rent reductions and making 262 redundancies, roughly a third of Baird Group’s total workforce.
The affected staff are those on the shop floors, mostly in Debenhams concessions, and in distribution.
Baird Group was hit hard by the coronavirus crisis, especially through its 87 concessions with embattled department store chain Debenhams, which underwent administration during lockdown and could now be put up for sale.
Baird Group chief executive Mark Cotter told the Financial Times that the business would pursue a restructuring that would “create a solid platform for a successful and sustainable business for many years to come”.
This would entail a refocus on its largest retail outlets of Ben Sherman and Suit Direct while expanding its online presence.
Baird Group’s CVA proposal needs approval from at least 75 per cent of creditors, and a vote is slated to take place August 10.
The company temporarily shut all of its 47 standalone stores during lockdown, and 10 remain closed since restrictions on non-essential retailers were lifted last month.
Baird Group is owned by Arafa Holding, an Egyptian garment manufacturer and retailer.