Suits You collapses putting 350 retail jobs on the line

Speciality retail Group, the company behind the Suits You menswear chain, has collapsed into administration just eight months after a controversial insolvency procedure, leaving 350 jobs hanging in the balance.

GA Europe, the restructuring specialist, acquired SRG yesterday for an undisclosed sum and then put it into administration by appointing Zolfo Cooper, the recovery services firm.

Suits You – which has 65 stores some of which house Young's Hire – appeared to have been saved in February after creditors approved a company voluntary arrangement (CVA), an insolvency procedure that saw its rental bill slashed. SRG offered landlords of 42 loss-making stores 60 per cent of the full-rent for a period of 18 months after which they would close.

But dire recent trading sealed the retail group's fate. Zolfo Cooper said that Suits You had suffered "severe cash flow difficulties".

The administration is a blow to the high street ahead of the crucial Christmas trading period, with industry experts expecting more retailers to fold in the months ahead.

Furthermore, the failure of Suits You just eight months after it completed the CVA, which was supervised by the accountancy firm KPMG, raises questions about whether sickly retailers will be able to use this insolvency procedure to avoid collapse.

Some of the biggest retail landlords, such as Land Securities, have expressed serious concerns about CVAs.

Fraser Gray, a partner at Zolfo Cooper said: "Circumstances have been particularly tough for many businesses on the high street. It's important that we identify and focus on the more profitable parts of the business, while continuing to streamline the least effective." Zolfo Cooper will continue to trade "successful" Suits You shops, while pursuing, a "realisation strategy for part of the business and assets". However, it will "wind down" loss-making stores.

GA Europe, which is a subsidiary of the US restructuring giant Great American Group, said it will assist the administrators in evaluating SRG's trading and to operate the stores. Given the losses being incurred by the Suits You stores, a quick decision is required.

Back in February, Peter Lucas, the chairman of SRG, said: "We look forward to a new chapter in the business's development and we are confident that the CVA will give Suits You a new lease of life."

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Mortgage Advisor - OTE £95,000

£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...

SThree: Trainee Recruitment Consultant

competitive: SThree: Are you passionate about sales?Do you have a keen interes...

Recruitment Genius: Loan Adviser - OTE £30,000

£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Day In a Page

Isis in Syria: Influential tribal leaders hold secret talks with Western powers and Gulf states over possibility of mobilising against militants

Tribal gathering

Influential clans in Syria have held secret talks with Western powers and Gulf states over the possibility of mobilising against Isis. But they are determined not to be pitted against each other
Gaza, a year on from Operation Protective Edge: A growing population and a compromised and depleted aquifer leaves water in scarce supply for Palestinians

Gaza, a year on from Operation Protective Edge

A growing population and a compromised and depleted aquifer leaves water in scarce supply for Palestinians
Dozens of politicians, bureaucrats and businessmen linked to Indian bribery scandal die mysteriously

Illnesses, car crashes and suicides

Dozens of politicians, bureaucrats and businessmen linked to Indian bribery scandal die mysteriously
Srebrenica 20 years after the genocide: Why the survivors need closure

Bosnia's genocide, 20 years on

No-one is admitting where the bodies are buried - literally and metaphorically
How Comic-Con can make or break a movie: From Batman vs Superman to Star Wars: Episode VII

Power of the geek Gods

Each year at Comic-Con in San Diego, Hollywood bosses nervously present blockbusters to the hallowed crowd. It can make or break a movie
What do strawberries and cream have to do with tennis?

Perfect match

What do strawberries and cream have to do with tennis?
10 best trays

Get carried away with 10 best trays

Serve with ceremony on a tray chic carrier
Wimbledon 2015: Team Murray firing on all cylinders for SW19 title assault

Team Murray firing on all cylinders for title assault

Coaches Amélie Mauresmo and Jonas Bjorkman aiming to make Scot Wimbledon champion again
Wimbledon 2015: Nick Bollettieri - Vasek Pospisil must ignore tiredness and tell himself: I'm in the quarter-final, baby!

Nick Bollettieri's Wimbledon Files

Vasek Pospisil must ignore tiredness and tell himself: I'm in the quarter-final, baby!
Ashes 2015: Angus Fraser's top 10 moments from previous series'

Angus Fraser's top 10 Ashes moments

He played in five series against Australia and covered more as a newspaper correspondent. From Waugh to Warne and Hick to Headley, here are his highlights
Greece debt crisis: EU 'family' needs to forgive rather than punish an impoverished state

EU 'family' needs to forgive rather than punish an impoverished state

An outbreak of malaria in Greece four years ago helps us understand the crisis, says Robert Fisk
Gaza, a year on from Operation Protective Edge: The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas

Gaza, a year on from Operation Protective Edge

The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas
How to survive electrical storms: What are the chances of being hit by lightning?

Heavy weather

What are the chances of being hit by lightning?
World Bodypainting Festival 2015: Bizarre and brilliant photos celebrate 'the body as art'

World Bodypainting Festival 2015

Bizarre and brilliant photos celebrate 'the body as art'
alt-j: A private jet, a Mercury Prize and Latitude headliners

Don't call us nerds

Craig Mclean meets alt-j - the math-folk act who are flying high