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Jobs at risk at Store Twenty One

77 fashion outlets to close as rent deal agreed

Store Twenty OneFashion retailer Store Twenty One is to close 77 shops as part of a rescue deal with its landlords.

The company said these shops are not viable even under the terms of a company voluntary arrangement (CVA) it has secured.

That deal puts more than 500 jobs at risk but will allow the company, founded in 1932, to continue operating more than 100 stores on cheaper rents and will secure about 1,200 full-time jobs..

Pravin Soni, director of Store Twenty One said the CVA should ensure the future of the business.

The agreement is similar to that which was negotiated by BHS although it failed to get the further funding it needed to stay in business.

> Scottish retail sales fell in June by 1.4% on a like-for-like basis compared to June 2015, when they declined by 2.2%.

Total Food sales were 0.1% up on June 2015, when they had decreased 2.2%. This is the first reported sales growth since December 2015 and only the third time in the last two years. Total non-food sales declined 2.6% compared to June 2015, when they had decreased 1.3%.

Ewan MacDonald-Russell, head of policy & external affairs at the Scottish Retail Consortium said: “These figures show Scotland is still some way from sustained retail sales growth.

“Overall, there is a small real-terms rise of 0.6% against June 2015, which is slightly less than the previous month. Food sales were stronger, growing by nearly one per cent. However, this was slightly offset by lower non-food sales, with clothing and footwear performing relatively poorly.

“It’s far too early to tell whether the vote on membership of the European Union will have an impact on retail sales and shop prices.

“There are signs that customer confidence may have faltered since June 23 [the date of he EU referendum]. Therefore, it’s important the Scottish Government gives careful consideration to how it can use its economic powers, for example on business rates and the Apprenticeship Levy, to support Scottish retailers and grow the wider Scottish economy.” 

David McCorquodale, Head of Retail, KPMG, said:Although total sales are down on last year, the grocery sector saw a change in fortunes, registering its first growth in sales since December. Big ticket items in the non-food category continued to perform strongly. Bolstered by a summer of sport, electricals faired particularly well, as consumers looked to buy the latest televisions to watch the football, tennis and golf.

“That being said, the food retail market continues to face challenges and we can’t yet fully predict how the cost impact of leaving the EU will trickle down to the consumer. Where we have already seen an impact is on the rising cost of family holidays abroad. As a result, we expect to see retailers try to benefit from staycations and overseas tourists in the short term.

“June also saw high street retailers, once again, fall victim to inclement weather. Introducing early sales didn’t prevent seasonal lines being hit by an unpredictable weather front which, after an initial sunny spell, dominated from the second week in June through to the end of the month.” 

 

 

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