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By
Reuters
Published
Feb 20, 2009
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MBO saves 3,000 UK shoe shop jobs, 2,500 to go

By
Reuters
Published
Feb 20, 2009


Barratts Shoes
LONDON, Feb 19 (Reuters) - The management of Barratt Shoes and Priceless Shoes have struck a deal that will save 3,000 jobs, the administrators of the British shoe retailers said on Thursday.

However, the deal only covers 160 stores and 165 concession outlets and the remaining 220 stores will close, with the loss of 2,500 jobs, Deloitte said.

"Due to difficult short term financial difficulties and the long term sector outlook...the store portfolio was deemed to be too large, and unable to generate sufficient profits to cover its cost base," Deloitte said in a statement.

It added that as a result of the deal with existing management, led by Michael Ziff, the Barratt and Priceless brands would continue on Britain's shopping streets.

Barratt and Priceless were put in administration on Jan. 26 and followed by parent company Stylo (STYL.L) on Feb. 17.

(Reporting by Mark Potter, Editing by James Davey)

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