Barratt and other subsidiaries of Stylo, the parent company of Barratts, were placed into administration today but its owners, the Ziff family, are planning a rescue bid with a Company Voluntary Arrangements (CVA).
The proposal by the Ziff family which owns Stylo, said the CVA would protect the ‘long-term future’ of its subsidiaries.
The CVA would allow Stylo subsidiaries to be refinanced and restructured while in administration.
It would also propose to repay all creditors in full and reach new agreements with landlords. Once it seeks the green light from landlords and creditors it will exit administration.
It said it already had support for the process from Prudential, Lloyds Group and Barclays. The Ziff family also said it will make substantial further funds available.
Administrators from Deloitte have been appointed to its businesses comprising: Stylo Barratt Shoes Limited, Stylo Barratt Properties Limited, Priceless Shoes Properties Limited, Barratts Shoes Properties Limited and Comfort Shoes Limited.
A statement from the administrator said the CVA plan would: ‘restore the group’s business model to viability, which will facilitate the best outcome for creditors; and a better outcome for creditors than would be likely if a ‘prepack’ administration had been proposed.’
The creditors meeting proposing the CVA has been called for 12 February.
Stylo plc is not in administration but it has requested its shares be suspended on AIM.
Michael Ziff, chairman and chief executive of Stylo, said: ‘After much careful thought and planning, I am satisfied that we are proposing an arrangement which will enable the business to move forward with a stronger foundation and achieve a solution that is in the best interests of all stakeholders.’