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Select to collapse into administration this week

Fashion chain Select is expected to collapse into administration on Thursday morning, before launching another company voluntary arrangement (CVA) in the next fortnight.

Advisory firm Quantuma will oversee the administration.

Quantuma partner Andrew Andronikou said: “The company will announce on Thursday that it will be going into administration.

“Then in another two or three weeks it will announce proposals to creditors for another CVA. There are no plans to close any stores or make redundancies.”

Select employs around 2,000 staff and has around 170 stores, Quantuma said. 

It comes after Select filed a notice of intention to appoint administrators at the High Court last month.

The chain, which is owned by Turkish entrepreneur Cafer Mahiroğlu, resorted to a CVA last April. This enabled it to cut its rents by up to 75% and saved nearly 2,000 jobs.

Mahiroğlu bought the company out of administration in 2008. 

Select has been ed for comment.

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Readers' comments (5)

  • Eric Musgrave

    Good luck to the Select employees at this worrying time. Here is more evidence that a CVA usually only delays the inevitable. This is relevant to Debenhams' situation. Also, how many millions in fees are paid to accountants, lawyers and restructuring "experts" in these instances who they know they will probably get another load of dosh a couple of years down the line?

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  • And how little is paid to suppliers and landlords Eric. It's too easy to resort to a CVA

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  • darren hoggett

    An outsider looking in would regard the clothing industry today as a directionless affair with little businesses acumen in too many cases. Every other week it is yet another administration of one form or another, to the point where it is almost becoming, dare I say, fashionable.

    So much so in fact that Drapers should seriously be considering a 'Administration/CVA of the Year' prize at their awards ceremony, where the winners can gloat about how much wool they've pulled over the publics eyes and how much money they've shafted their suppliers.

    Nobody is ever willing to take personal responsibility for their failings, with the usual comments about 'challenging conditions' and 'change of consumer habits' are trotted out as the only factors.

    While those two reasons have genuine merit, nobody mentions the often appalling management that has lead these companies to hit the buffers, with the inevitable administration and start-up process where the often overpaid, under skilled and over promoted management continue to chew from the rotting carcass until there is absolutely nothing left. They will then be rewarded for the ineptitude by getting another 'gig' at another brand or retailer where they can do it all again.

    CVA's don't make bad retailers become good ones. But if the law allows this to happen, then who really is to blame?

    Cynical or reality? You decide.

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  • This seems like Selects business model. This just keeps happening, there should be a limit of how many times a company can go into CVA/Admin. It seems like it’s their business model. Disgusting.

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  • I'm looking forward to the CVA of the year awards-put me down for a table of 10.

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