Almost 80 "unviable" stores run by retail group Store Twenty One are set to close after a deal was agreed with its creditors.
The agreement, known as a company voluntary arrangement (CVA), will see rents slashed by 25 per cent at 17 of the Shirley-based group's 202 stores while landlords at a further 80 of its shops have agreed to take monthly rental payments.
But 77 shops will close, costing hundreds of jobs, under the CVA which said this group of stores was "not considered by the directors as having any prospect of being restored to viability even if a reduction in the amount of rent is obtained".
The list is spread across the UK but includes the Store Twenty One in Brierley Hill.
Store Twenty One sells clothing, shoes and household goods such as bedding and lighting and has shops across Birmingham, the Black Country and Worcestershire.
Last month, advisory firm AlixPartners Services UK was appointed nominee of the CVA relating to Grabal Alok (UK), part of the Indian textile firm of the same name which operates the Store Twenty One shops.
AlixPartners was also appointed administrator of Be-Wise and QS, both of which are property subsidiaries of the Store Twenty One group.
The CVA was approved at a meeting of the group's creditors as the "business seeks to remain competitive in today's challenging retail environment", according to a statement issued by AlixPartners.
It received support from almost 90 per cent of those creditors who voted.
Peter Saville, Ryan Grant and Anne O'Keefe of AlixPartners will now become the supervisors of the CVA and monitor its implementation whose principal objective is to rationalise the company's leasehold and operational obligations and help it return to profitability.
Alok acquired the firm in 2007 since when it has been making a loss continually.
Store Twenty One director Pravin Soni said: "We would like to thank all of our employees, creditors and other stakeholders for their support in what we know has been a very difficult time.
"The directors and management team now look forward to focussing on the future of Store Twenty One and working with everyone to make this business a success for many years to come."
Legal advice was provided to Grabal Alok by Shoosmiths.
Restructuring partner James Keates said: "It has been a pleasure to advise the company on this complex arrangement which in our view was in the interests of all parties concerned.
"As a result, the business is healthier and more than a thousand jobs have been preserved."