Suits You Goes into Administration

High Street clothing retailer Suit’s You has gone into Administration this week, after failing to keep up with payments into a CVA set up just eight months ago.

Administrators Peter Holder, Fraser Gray and Stuart Mackellar of Zolfo Cooper will now wind down loss-making stores after the CVA had already led to the closure of some of its stores back in March.

The Leeds-based business, which has 65 stores across the UK and Ireland and has the corporate name Speciality Retail Group Ltd (SRG), had made attempts earlier this year to appease its creditors through a company voluntary arrangement.

The CVA, which was supervised by KPMG, allowed the firm to slash its rent bill to landlords for 18 months.  SRG offered landlords of 42 loss-making stores 60 per cent of the full-rent for a period of 18 months after which they would close.

 It is expected that the landlord community will react angrily to this latest collapse arguing that this is another example of their claims on companies being marginalised.

Big blue chip retail landlords, such as Land Securities, have expressed serious concerns about CVAs. 

It was believed that last month the business began a strategic review with its options including a sale, closure or a move into administration if a sale was not forthcoming. 

The group, which also includes the Young’s Hire dress wear rental business and employs about 350 staff.

Holder, Gray and Mackellar of Zolfo Cooper said that they are planning to "support successful premises which would continue to trade, but would wind down loss-making stores and look to sell on as much of the business and assets as possible."

Gray said, “Circumstances have been particularly tough for many businesses on the High Street."

“It’s important that we identify and focus on the more profitable parts of the business, while continuing to streamline the least effective,” he added.

Posted at 04:26PM Nov 02, 2010 by Marc Stenton in Insolvency  |  Comments[0]