Birmingham-based retailer Ciro Citterio, which employs 1,750 staff and has 160 stores across the UK and Ireland, was forced into administration by the High Court because of cashflow problems following a shareholder dispute.
Kroll Buchler Phillips is the administrator. Unsurprisingly, DLA is advising – the accountancy firm and the law firm have a longstanding relationship.
Kroll Buchler has closed 27 unprofitable stores, but the rest will continue trading for the time being. The company will also be protected from creditors’ claims. This includes a £6.9m claim recently awarded to shareholder Kirit Thakrar. It was this dispute, which was concerned with the valuation of his interest in the company, that forced Ciro Citterio into administration.
The case is one of a handful of receiverships that DLA has worked on recently – previous examples include kitchen shop Spoils and designer Frank Usher. This particular administration is unusual in that the order did not take effect until three days after it was made.