Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Austin Reed creditors approve CVA

Austin Reed Group’s creditors have approved the “likely” closure of 31 stores across the UK and other measures outlined in the business’s Company Voluntary Arrangement.

Under the CVA, 22 CC and nine Austin Reed stores, including the two Austin Reed stores in Brent Cross and Bluewater, will receive a 50% reduction in rent with a view to winding up trading after six months.

A further 35 underperforming stores will be subject to a 20% rent reduction for 12 months, after which a consultation will take place to assess their viability.

The large majority of the group’s creditors (95%), including suppliers and landlords, voted to support the CVA.

The group’s remaining 166 stores, including the Austin Reed flagship on London’s Regent Street, will be unaffected.

Shareholders have agreed to inject £3m into the business to support a broader operational restructuring, which will include an improved multichannel offering.

Austin Reed Group business appointed Deloitte at the end of last year to work on a strategic review of the business - including its lease terms - after it made a £1.29m loss in the year to January 31, 2014.

Deloitte partners Neville Kahn and Rob Harding will now oversee the agreed actions. Kahn said: “We are pleased that creditors and landlords have recognised that the CVA proposals put forward offer the best possible solution for the group and all of its stakeholders. We would like to thank the landlords for their support, which has enabled us to achieve this outcome.”


Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.