Fashion chain Select has fallen into administration
Select, the budget fashion chain, has officially fallen into administration for the second time, putting 1,800 jobs at risk.
Staff across Select’s 169 stores face being made redundant if someone does not buy the business.
The company posted a loss of £15.5m in the 18 months to the end of 2018. Andrew Andronikou, Brian Burke, and Carl Jackson of advisory firm Quantuma were appointed joint administrators on 9 May.
READ MORE: Record numbers of empty stores on high street as retail crisis bites
This follows Select filing a notice of intention at the High Court in April to appoint an administrator.
Quantuma said it is assessing “all options” available to the business.
It is likely that potential buyers are already lined up, as there was interest in the chain before the collapse.
No redundancies have been made as a result of the administration yet, and Select will continue to trade online and in stores for the time being.
READ MORE: What is the future for Britain’s high streets?
Current owner Cafer Mahiroglu bought Select out of administration in 2008.
In April 2018, the company used a company voluntary agreement (CVA) to cut its rent by 75% and save about 2,000 jobs.
Unfortunately, it has been “unable to sufficiently deliver a turnaround plan” due to high street conditions, according to Qunatuma.
Britain’s high streets are in a major crisis with sales at their lowest since 2008.
READ MORE: UK high street shops disappear, customers switch to online shopping
Department store Debenhams fell into administration last month, before being handed a £40m lifeline from investors.
“Due to ongoing financial difficulties, I can confirm Brian Burke, Carl Jackson, and I have been appointed joint administrators of Genus UK T/A Select,” administrator Andrew Andronikou said.
“We will continue to trade Select while we assess all options available to the business, with the aim of achieving the optimum outcome for all stakeholders. Options include a sale of the business as a going concern, in addition to entering into discussions with those parties who have already expressed interest in acquiring the business.
Quantuma will also assess CVA proposals put forward by the directors, Andronikou said.