// Select creditors could be owed over £53m as part of administration process
// Select fell into administration last month, putting 1800 jobs at risk of redundancy
// Unsecured creditors, including landlords and HMRC, have said they are owed money
Select creditors could be owed £53.1 million as part of the struggling fashion retailer’s administration process.
The value fashion retailer fell into administration last month, putting 1800 jobs at risk.
Unsecured creditors, including landlords and HMRC, have said they are owed money after the retailer became insolvent in May.
The fashion chain negotiated major rent cuts with landlords last year through a CVA, but it was unable to revitalise its financial situation.
Last month, Select secured a second rent cut through a CVA as part of the administration.
Meanwhile Quantuma, which was appointed as administrator to the company, revealed that landlords are looking to reclaim almost £3.5 million from Select as part of the unsecured non-preferential claims.
Furthermore, Companies House revealed claims of over £2.3 million from HMRC, including £1.7 million in relation to unpaid VAT.
Select was rescued out of administration by Cafer Mahiroglu in 2008, and currently has 169 stores, employing around 1800 staff members.
Mahiroglu’s firm, Ozdemir, is owed £2.9 million as part of the administration.
According to the statement of affairs, Select only had £1 million of cash in the bank at the time of the administration and held a further £2.8 million worth of stock.
Moreover, Select reported a “highly disappointing” Black Friday as well as poor sales during the Christmas trading period – with sales being 20 per cent below targets.
Revenues remained “notably below forecasts” in 2019 amid continued pressure on the high street, with Select blaming Brexit as a “contributing factor”.
In the four months to March 31, Select reported a turnover of £21.4 million, and suffered a loss of £1.3 million.