The Ziff family have rescued 160 Barratts and Priceless shops, part of the Stylo group, from administration.
Stylo chairman and chief executive Michael Ziff said the family had bought the Stylo, Barratts and Priceless names from administrators Deloitte as well as 160 stores, the internet business and Stylo’s 165 concessions within Dorothy Perkins.
Michael Ziff told Drapers his priority was to talk to suppliers and stabilise the business.
Our suppliers are the lifeblood of this business and I want to look after them.
Stylo chairman and chief executive Michael Ziff
He said: “The first thing we need to do is stabilise the business but trade has been not too bad in the last few weeks. Our suppliers are the lifeblood of this business and I want to look after them. Clearly we are now a smaller business but we want to make sure we honour our commitments to them as best we can going forward.”
David Lockyer will continue to run the Barratts chain and Ron Stark will continue to run Priceless. Buying director Roger Parr will also remain at the business.
Neville Kahn, Deloitte partner and joint administrator said: “Given the difficult trading environment, we are pleased to have achieved a deal which will save 160 Stylo stores and 165 concession outlets across the UK and Ireland, thereby safeguarding 3,000 jobs. Due to difficult short term financial difficulties and the long term sector outlook, however, the store portfolio was deemed to be too large, and unable to generate sufficient profits to cover its cost base. As a result, the remaining 220 stores will be closed imminently, with the regrettable loss of 2,500 jobs.”
Stylo was forced into administration after landlords voted against its Company Voluntary Arrangement proposals at a creditors meeting last week. Suppliers were largely supportive of the CVA.