Stylo heading for administration after creditors reject rescue plan for PriceLess and Barratts chains

Feb 14 2009 by Henryk Zientek, Huddersfield Daily Examiner

Stylo heading for administration after creditors reject rescue plan for PriceLess and Barratts chains

SHOPWORKERS in Huddersfield are among thousands of employees under threat after a rescue deal was rejected.

Parent company Stylo said it was “disappointed” to report that talks with creditors and administrators aimed at saving its PriceLess and Barratts shoe shop chains had failed.

It means Bradford-based Stylo will be placed into administration – putting the jobs of 5,400 employees at risk.

They include 34 staff working in Huddersfield, where Stylo has a branch of PriceLess at New Street and Barratts in the Kingsgate Centre as well as concessions in Dorothy Perkins and Bay Trading.

PriceLess and Barratt fell into administration on January 26.

Stylo had hoped creditors of PriceLess and Barratts would agree to rescue the business from administration and place it in a company voluntary arrangement.

Such a deal would have given the company breathing space in its debt repayments.

But Daniel Butters, Deloitte partner and joint administrator, confirmed that creditors and landlords had rejected the CVA proposals.

He said: “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 operates 400 high street shoe stores in the UK under the Barratts and PriceLess brands.

The chains employ almost 400 people across Yorkshire.