Suits You owner tailors CVA
Landlords of SRG's 42 loss-making stores will be offered 60% of the full rent for a period of 18 months.
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.