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Austin Reed considers 30 store closures

Austin Reed is mulling the closure of dozens of high street stores, as it seeks to secure the long-term future of the business.

The classic menswear and womenswear chain has started discussions with landlords about a Company Voluntary Arrangement (CVA), with approximately 30 shops said to be under consideration, according to Sky News.

Darius Capital, which owns Austin Reed Group, is expected to invest fresh capital into the business, property sources told the news service.

It is understood that a final decision about whether to continue with a CVA or close stores has not been made.

In December, Austin Reed appointed Deloitte to work on a strategic review of the business after it made a £1.29m loss in the year to January 31, 2014.

In its latest accounts, Austin Reed Group, which as well as classic menswear and womenswear chain Austin Reed also includes mainstream womenswear retailers Viyella and CC, made a pre-tax loss of £1.29m on sales of £109m in the year to January 2014, against a pre-tax profit of £1.77m on sales of £113m a year earlier.

The group, backed by investors Guy Naggar and Peter Klimt, has more than 260 shops and concessions in the UK.

Austin Reed and Deloitte declined to comment.

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