Select has filed proposals for a CVA in order to slash rents, after it fell into administration earlier this month.
Quantuma, the administrator of the embattled fashion brand, said a meeting has been arranged for June 11 when the business’ creditors will vote on the company’s future.
The CVA proposal does not suggest the immediate closure of any of the embattled fashion chain’s 169 UK stores or making any redundancies to its 1,800 employees.
Quantuma partner Andrew Andronikou said: “As joint administrators, we have arrived at the view that a CVA offers the best outcome for creditors as a whole. The proposal does not outline the immediate closure of any of the company’s stores, and any immediate redundancies, however some may occur even if the proposal is approved.
“If the proposal is not approved, it is anticipated that the company will remain in administration and, in the event a suitable offer is not received to acquire the business, we will have to consider ceasing its trading activities.”
The CVA proposal comes less than a year after Select last went through the insolvency process in a bid to slash rents across its store portfolio.
The retailer called in turnaround and recovery specialist UHY Hacker Young in February 2008. Turkish entrepreneur Cafer Mahiroğlu bought it out of administration and has owned it since.
The latest attempt at restructuring comes after the retailer endured what sources described as “horrendous” sales during the crucial Christmas trading period.
Andronikou blamed “low levels of consumer confidence” combined with “Brexit uncertainty and volatile currency”, which resulted in an inevitable “squeeze on cash flow”.
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