The Baird Group, licensee of menswear retailer, Ben Sherman and also the owner of Jeff Banks and Suit Direct, has launched a CVA proposal and kicked off negotiations with creditors, according to The Financial Times.
The proposal features closing more than a third of its stores (approx. 18) and seeking rent reductions with landlords. 262 jobs will be cut, leaving around a third of the group’s total workforce redundant. Affected staff are those on the shop floors and in distribution.
Creditors will have the proposal put in front of them in a vote, said to be August 10. For the proposal to be approved, at least 75 per cent of creditors (by value) must vote in favour.
Baird Group suffered from coronavirus, particularly from its 87 concessions which were within struggling retail chain Debenhams. Since restrictions on non-essential retailers were lifted last month, only 10 stores remain closed. During lockdown, 47 of its standalone stores were temporarily shut.
Mark Cotter, CEO, said that the business would pursue a restructuring that would ‘’create a solid platform for a successful and sustainable business for many years to come’’. This would place more of a focus on the large retail outlets of Ben Sherman and Suit Direct, at the same time as expanding its online presence.