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Home›News›Troubled Store 21 to Close Penicuik Store

Troubled Store 21 to Close Penicuik Store

Year old shop in the precinct to be disposed of as retailer calls in administrators

By Thomas Scott
July 1, 2016
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Store Twenty One is preparing to close its Penicuik store after announcing it was to table a Company Voluntary Arrangement (CVA).

It may have only opened in June 2015, but the fashion and homeware retailer will leave Penicuik this Summer as it tries to avoid following BHS and Austin Reed into administration.

Closing down signs have been erected at the 4,683 sq.ft unit at 40 John Street in Penicuik’s ailing shopping precinct with a fire sale commencing. Staff were informed earlier this week about the decision and shortly after, signage was erected to advertise the move. Customers can expect to grab a bargain in their womens, mens or childrenswear departments before they close.

The chain, which employs over one thousand staff members at its 202 stores across the UK, announced Tuesday that it had appointed AlixPartners Services UK to oversee the enactment of a Company Voluntary Arrangement (CVA) that will allow the retailer to come to arrangements with their creditors to settle their debts. A CVA often sees the major restructuring of a company with the closure of unprofitable stores, such as that in Penicuik. BHS, British Home Stores, announced in March that they too would table a CVA but the action was not enough and the mainstay retailer fell into administration with the loss of 20,000 jobs. Store Twenty One is now battling to avoid collapse.

In a statement AlixPartners’ Peter Saville said:

We have been working closely with the directors of Store Twenty One for a number of weeks to consider options for the business and to chart a course for future success. After careful consideration the directors have taken today’s [Tuesday’s] decisions as these represent the best option in terms of preserving jobs and value within the group. Our focus now is on putting the restructuring plan into action by working closely with the management team and all other stakeholders in order to position the business to succeed in what is clearly an extremely competitive UK retail environment.

The retailer pays an annual rent of £55,000 for their unit in Penicuik with additional annual rates of £18,462. This £75,462 outlay, accompanied by inconsistent levels of footfall in the town centre, likely mean that the store has struggled financially in the past twelve months. The concern will be whether this unit will again lie vacant for a lengthy period of time, like it did after M&Co. departed, or whether the landlord may choose to dispose of their leasehold interest and sell.

Earlier this year, regeneration specialists Evolve Estates purchased the eastern side of the shopping precinct, including the anchor store B&M Bargains. Since their purchase was made they have failed to secure any new tenants but are believed to be in ongoing discussions with a number of high street retailers.

What do you think? Do you miss WM Lows who used to occupy the unit? Should the whole lot be rebuilt? Let us know below or join the conversation on Facebook or Twitter.

TagsEconomyPenicuikRetail
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Thomas Scott

Editor and founder of The Penicuik Cuckoo. Fourth year Architecture student (MA Hons) at Edinburgh University currently writing on the role of architecture in post-industrial towns. Interested in all things Penicuik. Triplet.

  • Bruce Brown

    Unfortunately,like many other towns,Penicuik has been permanently damaged by out-of-town centres such as Straiton,which suck all the business out of the surrounding areas.Despite their “green” claims,Edinburgh council have persisted with building on green belt sites,which they have sold or leased off for profit.I remember the “green belt” signs going up at Straiton with the assurance that there would never be any building allowed on this side of the bypass.
    The other nails in the coffin are the shockingly high rents(and thereby high rates) in Penicuik.I believe that the rents per square foot are higher than Edinburghs Prices street! Whilst shops are owned by developers trying to turn in high returns on investments,we will never see high streets recover.The only way is to have small shops owned by the occupiers who will then have smaller outgoings,and will be able to re-invest in their businesses instead of just barely surviving as they do now. Also,rates need to be removed from town centre sites and the the rates on out -of -town centres should be drastically increased to level the playing field. I suspect unfortunately ,that non of this will come to fruition.

Timeline

  • November 4, 2018

    Anchor Town Centre Store to Close

  • October 2, 2018

    2 SCOTS to Parade in Penicuik

  • August 23, 2018

    A702 Roundabout Works to Restart

  • June 12, 2018

    Roundabout Works Halted by Crummock Collapse

  • January 12, 2018

    Mauricewood Roundabout Works Begin

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