Select says 2000 jobs safe amid CVA as no stores will close

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Select

Womenswear retailer Select has become the latest to announce a company voluntary agreement (CVA) but has vowed not to close any stores.

The struggling company managed to secure approval from creditors for a plan to reduce the rents across its 183-store estate.

Amid the proposed CVA Select says that none of its stores will close and none of its 2000 employees will be made redundant, remaining “committed to protecting employment”.

Despite these promises, landlords will retain the right to take back loss making stores from the struggling fashion house should they fail to reach an agreement on rent reductions.

It revealed late last month that around 50 stores would not be affected by rent negotiations, but 25 would seek significant cuts.

Select reported a £1.5 million loss on sales of £81 million in 2016.

“The company is committed to protecting employment and following the acceptance of the proposal, will seek to continue to operate all of its UK sites,” partner at restructuring firm Quantuma Andrew Andronikou said.

“In doing so, this should provide stability to landlords and staff with further costs savings to be achieved via economies of scale and a controlled review of operational costs and structures to be conducted outside of the CVA proposal.”

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