Rescue deal for SRG forces it to shut 42 clothes stores

THE menswear group behind the Suits You and Racing Green brands yesterday secured a rescue deal that saved it from collapse, but the plans will see it close more than 40 high street stores.

Speciality Retail Group (SRG), which also owns the Young's Hire business, received backing from 98 per cent of landlords for turnaround plans that will allow the firm to pay less rent for loss-making stores and close under-performing sites.

Around 300 jobs have been safeguarded initially, although the arrangement will see 42 of its 73 stores – which include sites in Glasgow, Livingston and Gretna – shut in 18 months.

Most of the stores to be closed are located on high streets, where trade has been hardest hit. SRG, founded in 1907, will keep its Oxford Street presence in London.

Richard Fleming at accountancy firm KPMG, which oversaw the retailer's company voluntary arrangement (CVA), said: "The approval of SRG's CVA will come as a huge relief to the company and its stakeholders, particularly its 300 staff.

"If the creditors had not supported the company's turnaround plans, it undoubtedly would have faced administration."