BusinessBusiness RecoveryDeloitte sells Stylo to management, but 2,500 jobs lost

Deloitte sells Stylo to management, but 2,500 jobs lost

Administrators from Big Four firm pull off sale in tough economic conditions, saving the jobs of 3,000 staff, but 2,500 made redundant

Deloitte has sold 160 stores and 165 concession outlets of Stylo, the
collapsed shoe retailer, back to the management.

The sale will safeguards the futures of 3,000 staff, but 2,500 employees will
lose their jobs.

Joint Administrator Neville Kahn said: ‘Given the difficult trading
environment, we are pleased to have achieved a deal which will save 160 Stylo
stores and 165 concession outlets across the UK and Ireland, thereby
safeguarding 3,000 jobs.

‘Due to difficult short-term financial difficulties and the long term sector
outlook, however, the store portfolio was deemed to be too large, and unable to
generate sufficient profits to cover its cost base.

‘As a result, the remaining 220 stores will be closed imminently, with the
regrettable loss of 2,500 jobs.’

Creditors and landlords recently rejected the offer of a Company Voluntary
Arrangement for collapsed Stylo subsidiaries Barratt Shoes and PriceLess Shoes,
pushing its parent into administration.

The arrangement would have allowed Stylo time to address its issues and then
repay all, or some, of what is owed within an agreed time frame.

However CVAs are disliked by creditors because they often only receive a
fraction of what they are owed.

The administrators will be working closely with the Redundancy Payments
Office and Job Centre Plus to provide support for all staff, which will include
a fast track process for paying redundancy entitlements, the firm said.

‘We are extremely grateful to the staff and management for their support
throughout this difficult period,’ Kahn added.

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