London - Struggling menswear retailer Blue Inc is said to have filed for a company voluntary arrangement (CVA), asking landlords and creditors to reduce its store rents and minimize its debut as part of a rescue deal.
The CVA filed shows that Blue Inc aims to shut 33 of its 127 stores as part of its rescue plan, reported The Telegraph, as the menswear fashion chain is seeking to free up 3 million pounds of extra capital to service its debt and excessive stock, according to court documents. The stores listed in the CVA to shutter are also said to have rent arrears of 1.8 million pounds.
The move comes just over a year after Blue Inc went through a pre-pack administration, shuttering 74 stores as part of its restructuring plan. However, Blue Inc acquired part of the business back the same day and managed to save 1,500 jobs across its remaining 158 stores.
Blue Inc aims to pay back the money owed to creditors and landlords over the next three and half years, as part of a schedule of payments equal to just under 7 million pounds. The menswear retailer is said to have already agreed to another deal, which sees it outsourcing its warehousing and logistics operations, thereby saving 800,000 pounds a year. Blue Inc is set to hold a meeting with creditors on March 22, who will then be asked to vote on the terms of CVA.