Jobs go as fashion retailer Store Twenty One goes into liquidation

More than 900 jobs will be lost as Store Twenty One goes into liquidation.
More than 900 jobs will be lost as Store Twenty One goes into liquidation.

Fashion retailer Store Twenty One has gone into liquidation, resulting in the loss of 900 jobs.

Its owner, Indian manufacturing giant Alok Group, failed to secure investment for the chain following a Company Voluntary Arrangement (CVA) in 2016.

As a result, corporate recovery firm Quantuma has been appointed to handle a liquidation process, which will see the closure of 122 stores and the loss of 900 jobs.

The chain has six North East stores, in Jarrow, Houghton-le-Spring, Peterlee, Chester-le-Street, Stanley and Blyth.

Quantuma partner Simon Bonney said: "It is very sad that matters have got to the stage where all the stores were closed by management on Friday following a prolonged period of uncertainty leading up to the liquidation.

"We are now in the process of conducting an orderly wind-down and we would welcome contact from any interested parties who may wish to purchase assets of the company."

The loss-making store has found high street trading tough in recent years and its owners have struggled to keep the firm afloat.

Its store in King Street, South Shields, closed in June last year as the owners fought to save the company from going into administration.

In April, the company's management filed a notice to appoint administrators after Store Twenty One was served with a winding-up notice by HM Revenue & Customs for breaching the terms of the CVA.

Mr Bonney added: "The traditional retail sector continues to face significant challenges, not least with the changes in business rates. The company was founded in 1932 and unfortunately it is another example of the difficulties arising in the current economy."