Select has filed a notice of intention to appoint administrators at the court last week according to reports. This allows the company to protect itself from creditors actions to recover any debts. It is possible that a winding up petition was threatened and this move neutralises it for 10 days allowing the company to refinance, pay the debt or be sold as a going concern or simply be closed down and assets sold to repay creditors. Quantuma have been lined up to take on the appointment.
It was only last year that fashion retailer, Select, filed for a Company Voluntary Agreement (CVA), to cut rent costs and save themselves in the tricky trading conditions.
Select is not the first fashion retailer to struggle. New look, LK Bennett, Orla Reily, Bonmarche, House of Fraser have all been hit – to name but a few!
Can Select buy themselves some time? If not then 2000 jobs are at risk. In this case it would appear that the company voluntary arrangement was not enough. That said it would have paid back some money to creditors already.
Keep following our page, to stay updated