Suits You owner tailors CVA

Speciality Retail Group Ltd the menswear retailer, which trades as the Suits You, Racing Green and Young’s brands, has agreed a company voluntary arrangement proposal, KPMG has announced.

SRG runs 71 stores across the UK and employs approximately 300 people. There will be no immediate store closures or redundancies.

Unlike the JJB and Blacks CVAs where loss-making stores were closed and landlords of these stores were offered 6 months rent plus rates, SRG is not proposing to close any of its stores immediately, KPMG said.

Instead, landlords of 42 loss-making stores will be offered 60% of the full rent for a period of 18 months. The stores will continue to trade during this period.

The remaining creditors have not been asked to compromise financially but the landlords of the 29 profitable stores have been asked to move to a monthly payment schedule for 18 months.

"If, however, the landlords wish to take on new tenants, they can do so by giving 45 days notice. We believe this offers the landlords more flexibility and, indeed, is more generous than previous proposals as the reduced rent over 18 months equates to 11 months rent. SRG will continue to pay rates in full," Richard Fleming KPMG's restructuring chief said.

Brian Green, restructuring partner at KPMG, and proposed ‘supervisor’ of the CVA added : "In the coming weeks, we will be involved in meetings with the landlords to explain the proposal in more detail. For the CVA proposal to take effect, 75% of all creditors must agree to the terms."

The creditors’ meeting will be held at London Chamber of Commerce and Industry, 33 Queen Street, London, EC4 1AP at 12 noon on 23 February 2010. If voted through, the CVA will last for around 18 months.