Fashion retailer Austin Reed Group has announced that it is due to close 31 stores as part of a restructuring agreement that will also see the firm benefit from a £3 million cash injection from shareholders.

As part of a Company Voluntary Agreement (CVA) brokered by Deloitte, the group will close 22 CC stores and nine Austin Reed stores. It is also hoping to agree a deal with landlords to reduce the rent it pays on 35 underperforming sites by 20%.

Austin Reed’s chief executive, Nick Hollingworth, said: “The actions that we are taking will ensure a long-term, sustainable future for the brands in the group and will provide a solid financial platform from which to operate and grow the business.”

He added  that the decision to close the 31 stores was “not taken lightly” but that the business could not continue to operate loss-making stores.