// Baird Group’s CVA approved by creditors
// The move will results in 264 redundancies & 18 store closures
// It blamed the Covid-19 lockdown, the Debenhams administration & ongoing challenges in retail
The creditors of the Baird Group, one of the licencees for Ben Sherman and Suit Direct, have voted in favour of its CVA proposals.
This means the menswear firm will push ahead with axing 264 jobs and shutting down 18 stores, as well as one warehouse and one office, with immediate effect.
The Baird Group had been working with KPMG’s Restructuring practice to review all options available to address the challenges presented by the coronavirus pandemic.
The CVA divides the company’s store portfolio into two groups.
In addition to the store, warehouse and office closures, a total of 29 stores will see a reduction and phased rebuild of base rent.
The loss of 264 staff will also affect those who work in retail and distribution, mainly servicing the Baird Group’s Debenhams concession business.
However, the store closures 18 store closures in the CVA pertain to the Baird Group’s standalone stores, and with its Debenhams concessions unaffected.
“The support of the CVA from our creditors is a critical step in our wider turnaround plan, enabling us to lay the foundations for a successful future with a renewed focus on our core online channels and outlet stores,” Baird Group chief executive Mark Cotter said.
KPMG associate partner and CVA joint nominee Howard Smith said: “The vote saw approximately 94 per cent of all voting creditors choosing to approve the CVA, surpassing the 75 per cent total required in order to pass the resolution.”
The Baird Group previously cited the need for a CVA due to the dramatic impact on trade caused by the Covid-19 lockdown, the administration of Debenhams and ongoing challenges in the retail markets.
Prior to lockdown, it operated 47 standalone stores and 87 concessions.
Baird Group is owned by Arafa Holding, an Egyptian garment manufacturer and retailer.