Select has secured approval for its second CVA in just over 12 months as 87% of creditors backed its latest proposal.
The fashion retailer, which operates 169 stores and has 1,800 employees, is not planning any immediate store closures or redundancies under its restructuring plans.
The retailer’s CVA follows the business falling into administration in May, with Andrew Andronikou, Brian Burke and Carl Jackson of business advisory firm Quantuma being appointed administrators.
This marks Select’s second CVA in just over a year. The fashion retailer entered into a CVA last April, which allowed it to cut rents by as much as 75% and saved nearly 2,000 jobs.
Joint administrator Andrew Andronikou said: “The approval of the joint administrator’s proposals gives the best outcome for creditors as a whole. This will mean no immediate closures of the company’s stores, and no immediate redundancies.
“This should provide a platform upon which the company can deliver changes to its operational costs and structures, allowing it to stabilise and move forwards. As widely reported, there are many challenges in the UK retail sector, a factor which has adversely affected the high street.
“We are therefore pleased with the outcome of today’s meeting and the support displayed by creditors in their acceptance of the proposal, which has resulted in the rescue of the business.”
Select reported an operating loss of £15.5m in the 18 months to December 2, 2017, compared with an operating loss of £1.5m in the 12 months to June 4, 2016.
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