Fashion retailer Select has become the latest high street casualty to file for a company voluntary agreement (CVA), throwing 1750 jobs into uncertainty.
Genus UK, Select’s parent company, announced that it was seeking a CVA to allow it to reduce rents among its 183 stores across England and Wales.
While Genus UK said it had no plans to close stores, the CVA proposal includes an option for landlords to “take back loss-making sites”.
Of its 183 stores, it is thought that around 50 would not be affected by rent renegotiations or possible closures, while 25 would be subject to the largest rent cuts.
Andrew Andronikou of business advisory firm Quantuma, which is aiding Genus UK with the CVA, said Select had been hit by the “depressed retail market and escalating rent and rate charges”.
“The loss of anchor tenants on high streets and in smaller shopping centres has had a downward spiralling effect on stores such as Select, culminating in a reduction of footfall and therefore custom,” he said.
“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.”
Mr Andronikou said Quantuma was “confident” that the CVA’s proposals would be approved in order to prevent “another brand disappearing from our high streets”.
The news comes a week after New Look’s creditors approved its own CVA last week, which will result in 60 store closes and a loss of almost 1000 jobs over the next 12 months.
