London - Blue Inc has just been handed a lifeline as its Company Voluntary Agreement (CVA) has been approved by over 80 percent of its creditors. The CVA will let the fashion retailer reduce its rents, cut its debts and shut it underperforming stores without entering administration or seeking out a new owner.
Gary Paul Shankland and Kirstie Jane Provan from Begbies Traynor have been appointed joint supervisors of Blue Inc and its CVA process. The move comes a few weeks after Blue Inc filed a CVA in a bid to cut down on its rent debt, which is said to have totalled 1.8 million pounds according to reports.
"The approval of the CVA enables the company to continue with its wider organisational restructuring, and secures significant employment within the UK," commented Begbies in a statement. The CVA is said to have seen strong support from key shareholders, including suppliers and landlords, who remain committed to helping the retailer grow.
At the moment it remains unclear as to how many stores Blue Inc aims to shut, although reports indicate that more than 30 underperforming stores and their staff may be at risk.
The deal comes a little more than a year after Blue Inc placed its subsidiary A Levy into administration before purchasing the strongest part of the business back through a pre-pack deal. Administrators from Leonard Curtis oversaw the process, which resulted in the loss of approximately 580 jobs and 76 Blue Inc and Officer Club stores.