Stylo-owned Barratts and Priceless Shoes are the latest victims of the credit crunch.

High street footwear chains Barratts and Priceless Shoes have called in the administrators, joining the growing list of retailers hit by the economic downturn.

Both Barratts and Priceless Shoes, owned by Bradford-based company Stylo, operate more than 400 stores across the UK and employ 5,450 workers. All stores have remained open and are still trading.

Stylo plc has not gone into administration but its shares have been suspended.

Deloitte has been appointed administrator for the shoe stores and is currently seeking an agreement from creditors to place the companies into a Company Voluntary Arrangement (CVA).

 A CVA is an insolvency procedure that allows a company to reach an agreement with its creditors about the repayment of debts over an agreed period of time; 75% of the creditors need to agree on the proposal for it to be carried.

Deloitte hope that, if agreed, the CVA will allow the companies to emerge from administration in due course.

Daniel Butters, Deloitte Partner and Joint Administrator, said: “We are seeking to enable the rescue of Barratts and Priceless, while giving creditors and landlords certainty over their own positions.”

Stylo Chairman and CEO, Michael Ziff, commented: “After much careful thought and planning, I am satisfied that we are proposing an arrangement which will enable the business to move forward with a stronger foundation and achieve a solution that is in the best interests of all stakeholders.”