Select seeks CVA putting 2,000 jobs at risk

Genus UK, the parent company of fashion retailer Select, is seeking a Company Voluntary Arrangement (CVA) that would allow it to slash rents in its 183 stores.

While the group said it currently has no plans to close any stores, the CVA proposal includes an option for landlords to “take back loss-making sites”, which would put around 2,000 jobs at risk.  

However the exact number of stores in danger is unknown, a spokeswoman told Sky News that she was unable to say how many loss-making locations there are.

Andrew Andronikou of business advisory firm Quantuma, which is working on the CVA proposal, said the chain had been hit by the “depressed retail market and escalating rent and rate charges”.

“The loss of anchor tenants on high streets and in smaller shopping centres has had a downward spiralling effect on stores such as Select, culminating in a reduction of footfall and therefore custom,” he said.

“The position for this business, and many businesses of the same model is no longer tenable and has escalated to the present situation where a CVA is considered to be the only option, other than closing it in its entirety.”

Creditors will vote on the CVA proposal on 13 April.

The news comes just a week after New Look’s creditors approved its own CVA last week which will see it close 60 out of its 593 stores with 980 of its staff made redundant.