Around 2,500 jobs are to go at collapsed shoe retailer Stylo, administrators said today (19 February), even though they have struck a deal with the firm's existing management team that will safeguard around 3,000 jobs. 

Michael Ziff, Stylo chairman and chief executive, has bought 160 stores in the UK and Ireland operating under the Barratts and Priceless brands, as well as 165 concession outlets within Dorothy Perkins.

"Given the difficult trading environment, we are pleased to have achieved a deal," said Neville Kahn, Deloitte partner and joint administrator.

However, he added: "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. 

"As a result, the remaining 220 stores will be closed imminently, with the regrettable loss of 2,500 jobs."

Stylo collapsed into administration earlier this week after last-minute talks with creditors failed.

The firm had hoped creditors and landlords would approve company voluntary arrangements (CVAs) designed to turn the business around.