Select Fashion nears collapse, 35 stores to close

Select Fashion is reportedly on the verge of collapse, with 35 stores set to close if it falls into liquidation.

According to documents seen by The Sun, the clothing brand has drafted in advisers from Moorfields to oversee the liquidation of the business.

Directors at the brand reportedly said Select should enter into a Creditor’s Voluntary Liquidation (CVL), where both directors and shareholders agree to wind up a business that cannot repay its debts.

During this process, all remaining assets of a company are sold off to help pay back creditor debts.

Last year the company entered into a Company Voluntary Arrangement (CVA) with Moorfields, which enabled it to continue trading by negotiating debts. 

The brand first fell into administration in 2019. Select reportedly “owed creditors £53.1m” to landlords and HMRC following the company’s administration in May of that year.

The retailer filed for administration in May 2019, after it made a loss of £15.5m on sales of £117m in the 18 months to 2 December, according to accounts filed at Companies House.

The statement of affairs reported Select, under the name Genus UK, only had £1m of cash in the bank at the time of the administration and held a further £2.8m worth of stock.

Quantuma, who oversaw the administration, said that “prevailing high street conditions” have meant that the fashion retailer has been unable to “sufficiently deliver” on a turnaround plan it had embarked upon.

It is not the only fast-fashion group to recently face collapse. Earlier this year, Quiz  confirmed it had called in administrators, in a move that will result in the closure of 23 “loss-making or unsustainable” stores amid ongoing trading challenges for the group.

According to Sky News, the move will result in the loss of around 200 jobs following the closures.

Select has been contacted for comment.