Sixty UK, which distributes fashion labels Miss Sixty and Energie, is heading into voluntary liquidation after a company voluntary arrangement was quashed following a challenge by Liverpool's Metquarter.
Metquarter owner, Mourant & Co Trustees, a group of Irish investors, succeeded in having the CVA thrown out after the judge agreed it was unfairly weighted against landlords. Under the terms of the CVA Mourant would have lost its guarantee on the rent and been worse off than under a liquidation, where the guarantee remains.
Mourant is owed more than £1m in rent arrears for the unit in Metquarter and will now pursue the guarantor, Italian parent company Sixty Spa.
Bridge Business Recovery in London has been appointed to handle the Sixty UK.
Caroline Howard, partner at law firm Davies Arnold Cooper LLP, advises Mourant & Co Trustees.