In a last-ditch effort to save women’s fashion retailer Select and its 1,800 high street employees, administrators at British advisory firm Quantuma recently launched a compulsory voluntary arrangement (CVA). The chain, which has 169 UK stores, went into administration earlier this month, i.e., put under the management of licensed insolvency practitioners by court.
No immediate store closures or redundancies would be made under the plan. 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 the company will cease trading. The firm went through 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 had bought the business out of administration in 2008.