Restructuring plan rejected for Barratts and Priceless shoe chains

More than 5,000 jobs are under threat at High Street footwear retailers, Barratts and Priceless, after creditors have rejected proposals from its administrators.

Stylo, which is the owner of the chains, will now have to join Barratts and Priceless in administration after creditors and landlords turned down a Company Voluntary Arrangement (CVA), in which Stylo had proposed closing 150 stores as the first phase of a restructuring plan.

Barratts, Priceless and Comfort Shoes were placed into administration on 26 January. Deloitte, who was appointed as administrator, said the shops were still trading as normal and it was looking to place the companies into a CVA to give it extra time to save the businesses from complete collapse.

However, the administrators have said a buyer now needs to be found to protect as many of the 5,450 jobs as possible.

Stylo, which is based in Bradford, acquired shoe retailer Dolcis in February 2008 after it went into administration.

The company has been hit by the economic downturn and issued a profit warning in December and said it had experienced a severe fall in sales during November. Its shares were suspended late January due to worries over its financial health.

Story link: Restructuring plan rejected for Barratts and Priceless shoe chains