Rescue plan launched for womenswear retailer Select
Administrators have launched a last-ditch attempt to save women’s fashion retailer Select and its 1,800 high street employees.
The chain, which operates from 169 UK stores, went into administration earlier this month after a period of subdued sales.
Administrators at advisory firm Quantuma have launched a compulsory voluntary arrangement (CVA) in a bid to save the company from ceasing trading.
Under the plans, no immediate store closures or redundancies would be made. However, advisers said some may occur even if the proposals are approved.
If landlords do not approve the measures and no buyer is found for the business, it is expected that it will cease trading.
Andrew Andronikou, partner at Quantuma, said: “The turnaround plan embarked upon by the management delivered benefits but had not reached sufficient maturity to protect the business from this impact in the market.
“There remains the opportunity, with the support of its parent company, to bring these to fruition and, in doing so, return the business to a stable and profitable position.”
The company passed another CVA in April last year, securing a reduction to its rent bill from landlords.
However, it went into administration in May this year after low consumer confidence, Brexit uncertainty and volatile currency weighed on performance in the early part of the year.
Turkish entrepreneur Cafer Mahiroglu bought the business out of administration in 2008.