The new owner of TM Lewin has reportedly called in a restructuring firm as it considers a pre-pack administration deal that could see the closure of a number of its stores.
According to The Sunday Times, SCP Private Equity, who acquired the shirt maker earlier this year, has appointed restructuring firm ReSolve ahead of a possible pre-pack administration that would lead to the closure around 66 of its stores.
SCP had reportedly asked TM Lewin’s landlords to agree rent cuts but has now decided to operate the business principally as an online brand.
The firm acquired TM Lewin from Bain Capital for an undisclosed sum in May of this year.
TM Lewin currently has 66 stores in the UK. SCP had reportedly acquired the firm as a going concern and planned to maintain its current suppliers.
SCP, a specialist private equity investor, focused on the consumer sector, is headed up by managing partner, James Cox.
The SCP team also includes ex-ASDA CEO Allan Leighton, who led their turnaround and subsequent £6.7bn sale to Walmart; Leighton has also sat on the boards of some of Britain’s best-known brands, including Selfridges and Co, Dyson, The Royal Mail, The Co-Operative Group, Lastminute.com, Wagamama and Entertainment One.
At the time of the acquisition Cox said: “There are significant headwinds against great retail businesses in the current environment – posing a very real threat to the sector’s future.
“We wholeheartedly believe that specialist vertical-specific British brands, such as T.M. Lewin, will continue to hold a premier position in the eyes of the global consumer, and look forward to the challenge of helping the company adapt to the rapidly changing retail landscape.”
SCP has been contacted for comment.