Walker Morris, Addleshaws and BLP land Stylo group buyout roles

Walker Morris, Addleshaw Goddard and Berwin Leighton Paisner (BLP) have won major roles on shoe retailer Stylo's administration and subsequent buyout.

Walker Morris chairman Peter Smart advised the founders of the Stylo group, the Ziff family, on the buyout of 160 stores including brands Barratts and PriceLess.

The sale of the business came after the group went into administration last month (18 February) following a failed attempt to restructure Stylo's debt. Stylo's main subsidiaries, Barratts and PriceLess, went into administration at the beginning of the year.

The Ziff family acquired 160 stores and 160 concessions in a deal backed by Lloyds TSB – leaving 220 stores in administration. The sale came after the failure to restructure the group's debt under a company voluntary arrangement (CVA) when landlords objected to a proposed cut in shop rents.

BLP restructuring and insolvency head Ben Larkin led a team advising administrator Deloitte on the CVA and subsequent sale.

Larkin commented: "This was the first time that a CVA had been tried in a retail sector of this nature and there was enormous support from the general creditors. It was a missed opportunity and a shame it did not go through, but it means we will be back to more and more pre-packs."

Addleshaw Goddard banking partner Martin O'Shea advised long-term client Lloyds TSB on the funding.

"It was all about the timing on this deal and pulling enough people together to make sure that we delivered our part of the transaction on time," said O'Shea.

Walker Morris' Smart commented: "It is regrettable that the innovative CVA proposals that would have saved this company were voted down. Nevertheless, this acquisition from the administrators has preserved these brands and saved jobs across the UK."