A family buy-back of part of Bradford-based Stylo shoe retail group has saved about 3,000 jobs across the UK.
A large chunk of the company, which operated the Barratts and PriceLess stores, has been bought by the Ziff family, which owned about 65 per cent of the business that went into administration this week.
As a result, two PriceLess stores at Greengates and in Bradford city centre are among those staying open.
The deal means, however, that about 220 stores will close with the loss of about 2,500 jobs.
It is likely that some of the job cuts will hit Stylo’s Apperley Bridge head office, although Mr Ziff said it was too early to say how many.
Mr Ziff and fellow directors including his brother Edward, chief executive of property group Town Centre Securities, have taken ownership of 160 Barratt and PriceLess shops and another 165 concessions in stores operated by groups including Arcadia and the Co-op.
Michael Ziff remains as chief executive with Howard Stanton becoming chairman of the privately-owned business.
Mr Ziff began negotiations to buy part of the business, which his family has run since 1935, following the rejection of plans to put Barratts and PriceLess into a company voluntary arrangement that would have enabled Stylo to renegotiate rents with landlords and keep operating the shops.
But this was rejected at a creditors meeting last week, resulting in the Stylo group being put into administration.
Mr Ziff said he had been upset that the CVA plans had been voted down but was relieved that he had been able to rescue much of the business.
He said: “It has been a week of very long days and very short nights in order to bring off this deal but I am pleased that we have been successful.
“We have received some excellent support from Lloyds TSB bank and the Prudential Corporation and our professional advisers.
“It is popular to knock the banks at the moment but we have found our bank very positive and willing to help and it deserves credit for its positive attitude to supporting this deal.”
Mr Ziff said that he was now looking forward to the future and a new phase for the Stylo business.
He said: “Now it’s time to get our heads down and get on with some real business.”
Law firm Walker Morris acted on the acquisition by a newly-formed company funded and controlled by the Ziff family. A team of lawyers led by Peter Smart finalised the deal in seven days.
Mr Smart said: “It is regrettable that the innovative CVA proposals that would have saved this iconic company were voted down by certain creditors.
“Nevertheless, this acquisition from the administrators has preserved these famous brands and saved jobs across the UK.”
The future looked bleak for Stylo, which previously employed 5,400 staff, when administrators were appointed.
Daniel Butters, Deloitte partner and joint administrator, said: “Given the difficult trading environment, we are pleased to have achieved a deal which will save 160 Stylo stores and 165 concession outlets across the UK and Ireland, thereby safeguarding 3,000 jobs.
“Due to difficult short-term financial difficulties and the long-term sector outlook, however, the store portfolio was deemed to be too large, and unable to generate sufficient profits to cover its cost base. As a result, the remaining 220 stores will be closed imminently, with the regrettable loss of 2,500 jobs.
“We will be working closely with the Redundancy Payments Office and Job Centre Plus to provide support for all staff, which will include a fast-track process for paying redundancy entitlements.”
e-mail: chris.holland@telegraphandargus.co.uk
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