Barratts CVA meeting set for morning

The meeting, to take place at 9.30 on Thursday 5 February, can also be attended by landlords as a conference call.

The meetings follow the administrations of Barratts and other subsidiaries.

Owners of Stylo, which include the Ziff family, which owns 60% and is led by chief executive Michael Ziff, plan to rescue most of the company through a company voluntary arrangement (CVA).

The CVA proposal is said to be a 'fairer' way of dealing with creditors than the pre-pack administration route that many retailers take.

Administrator Deloitte and Ziff will explain that Stylo hopes to pay a turnover rent of 3% from 13 February until 2 May, rising to 7% for the balance of the two-year CVA, which will end in January 2011, for all its 380 stores.

For the CVA to be a success, 75% of the creditors need to give the proposal the go-ahead. Once this has been achieved, it will exit administration.

The creditors' meeting that proposes the CVA has been called for 12 February. The CVA has been structured so that landlords have the 'whip hand' and the deciding vote on whether the CVA will go ahead.

Ziff said the process was fairer than a prepack deal because, although he plans to shut around 150 shops by entering a CVA, he can work through on a shop-by-shop basis in consultation with landlords.

Landlords can phone in to the meeting on 08453014020 between 9.30-11.30 to ask questions.

Barratts and Priceless Shoes have been trading ahead of expectations in January Ziff said.