Store Twenty One expected to declare insolvency this week

By

Barbara Santamaria

Published
May 22, 2017

Discount clothing and homeware retailer Store Twenty One is set to enter administration later this week after its main backer refused to continue funding the struggling company.

According to the Telegraph, Store Twenty One is likely to declare insolvency this week. The British retail chain, previously known as Quality Seconds, employs over 1,000 people and has around 125 high street shops.

In the last few weeks, the company had been trying to raise fresh cash from its main lender, State Bank of India, ahead of a court-imposed deadline on Friday. But the bank, which is owed around £14 million, is understood to have refused further funding.

Earlier this month, Store Twenty One was sent a winding-up notice by HM Revenue and Customs for breaching the terms of last year’s CVA. The CVA deal allowed the retailer to shut 77 shops and cut the remaining rents by 25%, however the business struggled to meet payments amid tough trading conditions.

AlixPartners is thought to handle the administration.

Established in 1932, Store Twenty One evolved from a manufacturing business supplying clothing to M&S store  to a fashion brand in its own right. The business floated on the London Stock Exchange during the 1990s and due to its continued success was acquired by a group of private investors in 2002, making the group a private company.
The brand first came under pressure in 2006 and was bought out of administration by Grabal Alok, an Indian-based textile company in 2007. According to financial data, the business has failed to make a profit since.