UK-based fashion chain Store Twenty One, owned by Indian textiles company Alok Group, has gone into liquidation. It will shutter its remaining 122 stores which subsequently will result in job loss for around 900 people employed with the fashion retailer. Corporate recovery firm Quantuma will look after the liquidation process of Store Twenty One.
“It is very sad that retailer has to shut all of its stores on Friday following a prolonged period of uncertainty leading up to the liquidation. We are now in the process of conducting an orderly wind-down and we would welcome contact from any interested parties who may wish to purchase assets of the company,” reportedly said Quantuma partner Simon Bonney.
Store Twenty One had been facing a tough time in the market post its key lender, State Bank of India, refused financial funding. The brand, earlier known as Quality Seconds, filed for a Company Voluntary Arrangement (CVA) in July 2016 which resulted in the closure of 200 of its stores last year. It failed to raise funds after CVA filing, which allows firms to take time and settle their debts. HM Revenue & Customs had, therefore, sent a notice to Store Twenty One for breaching the terms of the CVA.
Closure of another retail business scripts the latest disappointment among the traditional high-street fashion players in recent years. Operating business has become difficult due to tough competition from discount chains, like Primark; while growing online space is only adding to the pressure on profit margin for fashion brands like Store Twenty One.