Birmingham-based Ciro Citterio, the men's fashion chain that went into administration earlier this week owing more than £30m ($42.9m), announced today that it is to close 45 of its 160 stores.

The group, which employs 1,750 staff and has 160 stores across Britain and the Irish republic, was put into administration by the high court to be rationalised and restructured because of cash flow problems caused by a shareholder dispute.

The retailer had planned to expand this year, but will now close up to 45 unprofitable stores - almost one-third of its total chain - with shops in Sheffield, Doncaster, London Wall and Cirencester among the first to go. A spokesperson for administrators Kroll Buchler Phillips said: "The process will begin immediately with closing down sales slated to start as soon as it is logically possible."

The chain, owned by the Thakrar family, will be ring-fenced from claims by creditors, including £6.9m recently awarded to Kirit Thakrar after a dispute over the valuation of Mr Thakrar's interest in the company.

As a result of the judgment some suppliers have reduced or withdrawn their credit limits for the group.

Ciro Citterio has grown rapidly over the past few years after it acquired Dunn & Co, Horne Brothers, Oakland and the Sweater Shop.

CEO Rasik Thakrar and CFO Ramesh Sthakiya were not available for comment.