ALIXPARTNERS and law firm Shoosmiths have advised Grabal Alok (UK) on restructuring options available for its value retail chain Store Twenty One, as the business seeks to remain competitive in today’s challenging retail environment.
At a meeting of creditors held on 15 July, the company voluntary arrangement (CVA) proposed by Grabal Alok (UK) Limited, trading as Store Twenty One, was approved. This followed the support of almost 90% of creditors voting.
Peter Saville, Ryan Grant and Anne O’Keefe of AlixPartners, which was appointed as administrators of failed fashion chain Austin Reed earlier this year, will now become the supervisors of the CVA and monitor the implementation of the proposal.
The principal objective of the proposal is to rationalise the company’s leasehold and operational obligations and to restore the viability of the company’s business and balance sheet, to assist in a return to profitability. Obtaining the compromises and arrangements set out in the proposal will, in the opinion of the directors, enable the company to achieve this objective
The value chain began life as Quality Seconds, and then QS, but was rebranded as Store Twenty One when it was acquired by leading Indian textiles group Grabal Alok in 2007.
Peter Saville of AlixPartners commented: “The level of votes in favour of the CVA, across all of the various creditor groups, demonstrates the strong relationships that the Company has with all of its stakeholders and the support that exists for the Store Twenty One business.”
Pravin Soni, Director of Store Twenty One, said: “We would like to thank all of our employees, creditors and other stakeholders for their support, in what we know has been a very difficult time. The directors and management team now look forward to focussing on the future of Store Twenty One and working with everyone to make this business a success for many years to come.”
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