Specialist Retail Group (SRG), the menswear retailer, has escaped collapse
after it entered into company voluntary arrangement with the help of
Administrators at KPMG.
The CVA of SRG, which owns brands such as Suits You and Racing Green, had to
be approved by over 75% of the creditors and is essentially a financial
compromise which will allow a business to continue trading.
Richard Fleming, UK head of restructuring at KPMG said: “The approval of
SRG’s CVA will come as a huge relief to the company and its stakeholders,
particularly its 300 staff. If the creditors had not supported the company’s
turnaround plans, it undoubtedly would have faced administration. The company
now has a chance to focus its efforts on its successful designer outlet stores
and wind down its loss-making high street presence.”
Brian Green, restructuring partner at KPMG added: “The SRG CVA represents a
variation on the model we developed successfully for JJB and Blacks. Following a
constructive dialogue with a number of the significant landlords, we have varied
the model to make the return more generous but also to give landlords more
flexibility on finding new tenants and implementing a staggered closure of
non-profitable stores. Importantly and similarly to the JJB and Blacks CVAs, SRG
will continue to pay rates in full.”
Over 40 non-profitable stores will close in the next 18 months with the
landlords of those stores receiving 60% of the rent for that period of time.
The CVA was approved by 98% of the creditors.
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