Morecambe clothes shop closes down after parent company goes bankrupt
Fashion retailer Store Twenty One which had a shop in Morecambe, 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 including one in Morecambe.
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.”
Loss-making Store Twenty One has found high street trading tough in recent years and its owners have struggled to keep the firm afloat.
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.”