Select closure: High-street store could follow in the steps of New Look and shut down following surprise announcement

Posted on Mar 29 2018 - 6:39pm by admin

Select have announced the potential closure of storesSelect have announced the potential closure of stores [Getty]

High-street store Select have revealed it’s the latest chain struggling with the current climate and it’s future is unknown.

Select – which is owned by Genus UK Ltd – employs 2,000 people and has 183 stores across Wales and England.

The company trades as a value ladies’ fashion retailer, targeting 18-35-year-olds with up to 4,000 fashion products.

According to Quantuma, company Genus UK Ltd has asked for advice on a Company Voluntary Arrangement (CVA), witch creditors making a decision on Select’s future with a vote on April 13 2018.

Genus UK Ltd have asked for advice on a CVAGenus UK Ltd have asked for advice on a CVA [Getty]

Quantuma partner, Andrew Andronikou said in a statement: “The business has suffered as a result of the depressed retail market and escalating rent and rate charges.

“This inevitably has caused a squeeze on cash flow resulting in a cash burning for a number of years.

“The position for this business, and many businesses of the same model is no longer tenable and has escalated to the present situation where a CVA is considered to be the only option, other than closing it in its entirety.”

The news comes after New Look announced they’re set to close 60 stores across the UK. 

New Look are set to close 60 stores across the UKNew Look are set to close 60 stores across the UK [Getty]

The high street chain will be shutting shop nationwide at the expense of up to 1,000 jobs. 

However, New Look said it would attempt to redeploy those at risk of redundancy in other parts of the business.

In a statement – executive chairman of New Look – Alistair McGeorge – said: “Given our challenged trading performance and over-rented UK store estate, we are having to take tough but necessary actions to reduce our fixed cost base and restore long-term profitability.”

He added: “We have held constructive discussions with our key landlords and strategic partners and will now seek creditor approval on our CVA proposal. A priority for us is to keep all potentially affected colleagues informed during this difficult time.”

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