Brands and landlords have approved footwear retailer Shoon’s company voluntary arrangement, saving the business from falling into administration.
In a meeting this morning, Shoon’s CVA proposal was approved by more than 80% of unsecured creditors in a step towards securing the future of the retailer.
Managing director Mark Pinnock told Drapers 90% of suppliers and 70% of landlords approved the deal. “I’m over the moon; it’s the right decision for the business,” he said.
The CVA will involve some store closures, but minimal redundancies. There will also be rent concessions affecting the Brighton, Kingston, Reading, St Albans and Tunbridge Wells stores.
One managing director of a brand stocked at Shoon told Drapers he was pleased with the outcome: “No one wants to see Shoon disappear from the high street but we need to make sure it is a viable business moving forward. They have implemented a payment plan and it looks like we will get our money back so the risk has been lowered.”
However, another brand owner said many felt pressured into approving the CVA as they would not have received the money owed to them if the business fell into administration. “If the CVA did not go ahead you would get 6p in the pound back. Most people had no choice.”
As revealed exclusively by Drapers, the 10-store footwear chain entered into the CVA earlier this month to ensure the survival of the business, just months after Mark Pinnock bought it with backing from investment firm Tnui Asset Finance from industry veterans Ken Bartle and Peter Phillips.
Shoon, which employs 160 people in total, made a pre-tax loss of £1.3m on sales of £8.3m for the year to February 1, 2014, according to the most recent accounts filed at Companies House.