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Creditors vote puts Stylo into administration

Stylo, the footwear group which owns Barratts and Priceless, is poised to go into administration after failing to secure enough support for its Company Voluntary Agreement (CVA) from its creditors.

Deloitte will be appointed as administrators of Stylo.

Daniel Butters, partner and joint administrator at Deloitte said: “Following the meeting and vote yesterday we confirm that creditors and landlords have not accepted the CVA proposals. As a consequence we will now seek to achieve a sale as a going concern to preserve as many jobs as possible.  We are in focused talks with interested parties in an effort to deliver a swift solution.”

Sources in the footwear industry expect the Ziff family, who own the majority of Stylo, will make a play to buy the business back. It is unclear whether other parties are also circling the Barratts and Priceless chains.

A significant number of stores are expected to close as a result of the adminstration.

The CVA is believed to have failed because some of Stylo’s landlords are said to have voted against Stylo’s proposals, which would have seen them paid 3% of shop turnover for three months beginning in June. The payment would have increased to 7% for the remaining 11 month period of the CVA.

Landlords are thought to have voted against the CVA because of fear that an approval would pave the way for other retailers to pursue similar deals.

However suppliers to the Barratts and Priceless chains were thought to have been broadly supportive of the CVA. They were due to be paid outstanding monies in full over the 14 month period from June. Stylo’s suppliers were owed around £10 million collectively.

Readers' comments (9)

  • It would appear that this was caused by greedy Landlords putting up rent on the retail units.

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  • I completely agree.
    I think its disgracful.
    The landlords are being greedy and in the recession so many other companies have gone under barratts are now following because of their greed.
    I work for Barratts and the rent on our shop per year is stupidly high and in the past 2 weeks 3 other shops in our centre have closed because they are not making enough profit to cover the rent.
    at this rate we will have to buy everything from supermarkets and the internet!

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  • I feel sure Michael Ziff will rescue this business from administration and save as many jobs as he can. He tried to do the honorable thing for suppliers and employees with the CVA. I dont understand what the benefit to landlords is now? Surely they will just be left with a load of empty shops... I would be interested to hear their views and explanations on why they chose this.

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  • I totally agree with all comments made.Michael Ziff has tried so hard to act in the honourable manner in this very difficult situation unlike many retailers who seem to favour the pre pack route automatically!And typically when people are faced with something a little different they reject it out of hand.If suppliers were prepared to accept a CVA (and one can presume that their financial situation was greater than the landlords then why the reluctance of landlords?They wont be getting any other retailers to take over their properties in these very difficult trading times.

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  • Perhaps the landlords who know how many properties out there are vacant, and also where there are delinquencies of rent already, do know what they are doing. Perhaps it is in the detail of the CVA that is not visible other than to creditors and landlords.
    The landlords represent shareholders, often major insurance-pension funds and therefore individuals.

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  • Having read all the reader responses re the current situation of Stylo I am amazed that so many are annoymous!Surely if people are so vehement about a situation they should have the courage to stand up and be counted and be prepared to stand by their remarks?For instance anon of the 13th Feb at 8.46 pm is prepared to make defamatory remarks about the structure of Stylo and then implies that all directors etc will come out of it scot free but is not prepared to put their name to their comments.This person has I presume no idea of individuals personal wealth so is not in a position to comment on such matters.

    I strongly beleive that everyone is entitled to their own opinions on any subject you care to mention but when people start making defamatory comments about people and situations then they should be man enough to put their real name to the comments and take the consequences!

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  • Anon at 7.09. You are spot on...The director drafted in already had experience of closing companies. Of course people are not going to put there names on here. There are a lot of brown nosed area managers who can make your life uncomfortable. Shoe Zone will thin you out.

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  • To anon at 7.09pm and Observer.Various points 1.I stated that various statements had been implied.2.Anyone with any real and current knowledge of employment law and its various jurisdictions will fully understand that when a Company goes into receivership then redundancy payments are the statutory amounts ie one weeks pay for every year employed .This applies to all full time employees be it buyer,store manager or Directors!3 Stylo nor its assorted directors destroyed Hush Puppy ,Shellys,Saxone.Hush Puppy-still trading,Shellys still trading-Saxone -same.As for Dolcis -words fail me.Stylo purchased that after it had already fallen so they can hardly been blamed for that debacle.Lay the blame at the door of the right pre pack lothario please!

    You assume that I am an employee of Stylo and I suspect that you feel that I am probably being directed to make these comments.How wrong you are.I have my own business and have no personal involvement with this situation but am a highly educated person who as I have stated before feel that if people want to make comments and harsh ones at that then they should be prepared to name themselves.I would be more than happy to print my personal phone number should you wish to discuss this in more detail.I could also email you the grammatical corrections of your remarks

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  • Claire, I never assume anything, even when a person tells me they are intelligent, that quality is genrally apparent.

    Thanking you for informing us all on employment rights, so thats, £330 for each full year, £8250 - for 25 years, that will last for at least 3 months, a week if your a director on 400K a year, not so good hey.

    So Saxone has how many stores? Hush Puppy? Dolcis? , you need to do some research, perhaps its because you dont work for Stylo.

    Thanking you kindly for the offer of your telephone number, but I never take numbers from strangers, even if they offer to check out my grammer.

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