Administrators unchallenged in Suits You CVA

Administrators from KPMG have been given the go-ahead for a company voluntary
arrangement (CVA) at clothing retailer, Speciality Retail Group (SRG) with owns
brands such as Suits You and Racing Green.

Before the CVA could be approved, the proposal had to have remained
unchallenged for a period of 28 days which has now passed.

Richard Fleming, supervisor of the CVA and UK head of restructuring at KPMG,
said: “To ensure the collaborative approach of previous CVAs is sustained, we
worked with the landlords of SRG’s loss-making stores to ensure the terms of the
CVA met their needs, while protecting the profitable part of the business from
certain administration.”

“Make no mistake that administration leaves casualties on both sides, with
landlords appearing well down the food chain in the creditor group. Working
together with tenants offers a much more constructive path for all concerned,
not least the employees. Indeed a successful CVA, usually part of a wider
turnaround programme, has been proven to change the fortunes of a company in a
short time frame. Returning companies to health is in the best interests of all
stakeholders.”

The company employs approximately 300 people and has a portfolio of 71
stores. More than 40 stores, deemed non-profitable, will close after 18 months
of trading. The landlords of those stores are to receive 60% of the full rent.

Further reading:

Suits
You owner tailors CVA