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Stylo to go into administration

Shoe retailer Stylo is poised to go into administration after its creditors and landlords voted against the proposed Company Voluntary Arrangement (CVA) for its Barratts and Priceless chains.

It is understood that landlords have predominantly voted against the CVA for fear that an agreement would open the floodgates for other retailers to do the same. The majority of suppliers were, however, thought to be in favour of the CVA.

Administrator Deloitte is to be appointed administrator of Stylo. Deloitte partner and joint administrator Daniel Butters said: "Following the meeting and vote yesterday we confirm that creditors and landlords have not accepted the CVA proposals. As a consequence we will now seek to achieve a sale as a going concern to preserve as many jobs as possible. We are in focused talks with interested parties in an effort to deliver a swift solution."

Stylo announced on February 10 that the board intended to appoint an administrator of the company if the creditor meetings did not result in approval of the CVA proposals. It is expected that many stores will close as a result of the administration. www.retail-week.com

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