// Select criticised by landlord group for proposing 3rd CVA
// British Property Federation described the retailer’s most recent CVA as “deplorable”
Select has reportedly been criticised by a trade association for UK real estate after proposing a third CVA.
The British Property Federation (BPF) has spoken out against the womenswear retailer’s most recent CVA, describing it as “deplorable”, Drapers reported.
Select proposed a third CVA last week after its second, which had been in place since June 2019, and was terminated on May 8 following its failure make rent payments.
READ MORE: Select plans 3rd CVA in as many years
Last week, Select was working with advisors from Howard Kennedy to secure rent cuts, after it failed to pay rent since Covid-19 struck.
The fast fashion retailer had launched its first CVA in April 2018, which saw it cut rents by 75 per cent and save 2000 jobs.
BPF chief executive Melanie Leech said Select is “attempting to exploit the CVA process” by proposing to pay no rent for many of its stores, giving little indication as to how long the CVA will last and not producing a rescue plan.
She added that it would be “outrageous” to suggest that the business should be given new rights to break leases on stores that have benefited from rental discounts.
The total claim of non-critical creditors in Select’s CVA, including local authorities but excluding property owners, is just over £19 million, of which those creditors will only receive £971,845 – which is five per cent.
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