Select, the fashion brand, has gone into administration following its attempts to reduce costs via a Company Voluntary Arrangement. Select employs 1800 people across 183 stores.
Quantuma partner Andrew Andronikou, who has been overseeing the CVA said: “The company will announce on Thursday that it will be going into administration.
“Then in another two or three weeks it will announce proposals to creditors for another CVA. There are no plans to close any stores or make redundancies.”
The administration will enable it to restructure more deeply and then a new CVA will help it to keep on trading. See our page on Administration followed by CVA.
Who is Select?
Select is a UK high street fashion chain. Its parent company is Genus UK. The brand has 183 stores in the UK and sells approximately 4,000 items online. Select specialises in ladies’ fashion and targets 18–45-year-olds; a highly competitive market.
There are several reasons for the increase in pressure on UK retailers:
- Brexit uncertainties
- Weak pound
- Increase in the living wage
- High business rates
- Falling consumer confidence
- Shift to online shopping
A recent fashion report by analysts at GlobalData predicted the amount of money spent on clothing in town centres would fall by 14% – the equivalent of £2.4bn in lost sales – between 2018 and 2023 as spending moves online.