Intention to Appoint Administrators

 

TIDMSTYL 
 
RNS Number : 0919N 
Stylo PLC 
10 February 2009 
 
 
 
 
 
10 February 2009 
 
 
Stylo plc ("Stylo" or the "Company") 
 
 
Notice of intention to appoint Administrators for Stylo and update on CVA 
process 
 
 
On 26 January 2009, Neville Kahn, Daniel Butters and Lee Manning were appointed 
Joint Administrators of Stylo Barratt Shoes Limited, Stylo Barratt Properties 
Limited, Priceless Shoes Properties Limited, Barratts Shoes Properties Limited, 
and Comfort Shoes Limited (together "the Operating Companies") and now manage 
the affairs, business and property of the Operating Companies. 
 
 
The Board of Stylo and the Joint Administrators have held and continue to hold 
discussions with creditors and landlords of the Operating Companies regarding 
the Company Voluntary Arrangement ("CVA") proposals. However, at present, the 
Joint Administrators are unable to ascertain the outcome of the creditors' and 
landlords' votes which will ultimately determine the approval of these 
proposals. 
 
 
Stylo is wholly reliant on the support of the Operating Companies to remain 
solvent. This support is a specific term of the CVA proposals. Therefore, while 
still hopeful of a positive outcome, as a precautionary measure the Company 
today announces that the Board has filed a notice of intention in the High Court 
to appoint Administrators. It is expected that the Company will only enter 
Administration if creditors fail to approve the proposed CVA at the Meeting of 
Creditors on Thursday 12 February 2009. 
 
 
In parallel to these discussions, the Joint Administrators are reviewing the 
options for the Operating Companies in the event that the creditors and 
landlords do not approve the CVA proposals. Following discussions with a number 
of interested parties, these options include a rapid sale of all or part of the 
trade and assets of the Operating Companies, with the likely closure of those 
stores for which a purchaser cannot be identified. In the event that a sale is 
not possible, it is anticipated that piecemeal asset realisations and closure of 
the stores will be necessary. 
 
 
Michael Ziff, Chairman & Chief Executive of Stylo, commented: 
 
 
"The Board proposed this innovative scheme as it believed that it was equitable, 
transparent and in the best interests of all our stakeholders. We firmly believe 
that the CVAs represent a far better outcome for Stylo, our employees, our 
pension fund, our creditors and landlords than the alternative scenarios. 
 
 
"The benefits for landlords from this scheme are that they will have a vote on 
the CVAs in proportion to their rent roll, Stylo will enter discussions with 
each landlord regarding their property, rent will be guaranteed for six months 
on all properties and landlords will be able to find new tenants for each site 
with Stylo having the right to match the rent." 
 
 
"A vote against the CVAs will threaten the employment of some 5400 people. The 
alternatives are either a rapid sale of the business or liquidation of assets, 
both of which will result in the immediate closure of a significant number of 
stores. 
 
 
 
 
A further announcement will be made following the Meeting of Creditors on 
Thursday 12 February 2009. 
 
 
- ends - 
 
 
For further information, please contact: 
 
 
+-------------+-----------------+ 
| Stylo       | 01274 617 761   | 
| plc         |                 | 
+-------------+-----------------+ 
| Michael     |                 | 
| Ziff        |                 | 
+-------------+-----------------+ 
|             |                 | 
+-------------+-----------------+ 
| Arbuthnot   | 020 7012 2000   | 
| Securities  |                 | 
| Limited     |                 | 
+-------------+-----------------+ 
| Katie       |                 | 
| Shelton     |                 | 
| / Nick      |                 | 
| Tulloch     |                 | 
+-------------+-----------------+ 
|             |                 | 
+-------------+-----------------+ 
| Smithfield  | 020 7360 4900   | 
| Consultants |                 | 
+-------------+-----------------+ 
|  John       |                 | 
| Kiely       |                 | 
| /           |                 | 
| Andrew      |                 | 
| Wilde       |                 | 
| / Will      |                 | 
| Henderson   |                 | 
+-------------+-----------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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