Retailer Select Fashion is reportedly on the verge of collapse as the struggling chain nears the closure of 35 shops across the UK. The group has drafted in advisers to oversee a process of liquidation, according to documents seen by the Sun.
It comes as it is believed the chain will have shut 35 shops by this weekend after quietly trimming down its estate since the start of the year. Women’s clothing retailer Select entered into a company voluntary arrangement last year – whereby a business in distress has the opportunity to pay off debts to creditors over a fixed period of time, while still continuing to trade.
The process was overseen by restructuring specialist firm Moorfields. But Moorfields has now been tasked with overseeing a liquidation process, which means a business is wound up if it cannot repay its debts, the Sun reported.
Select Fashion could not be reached for comment, and Moorfields was not immediately available to comment, when contacted by the Press Asssociation. Select fell into administration in 2019, before being rescued by Genus UK. It is now owned by Turkish businessman Cafer Mahiroglu.
The company reported a pre-tax loss of £1.1 million for the year to the end of February 2023, according to its most recently-filed accounts. It previously flagged it was being squeezed by the cost-of-living crisis, wage pressure, and higher taxes, on top of a tougher economic climate.
Select’s troubles follow several collapses and closures on the high street in recent months. Rival fashion chain Quiz shut 23 stores last month after falling into administration, with the retailer also citing the higher cost of living squeezing spending among its customers.
High-profile administrations in 2024 included Homebase, Carpetright and The Body Shop. All three were bought out of administration, but thousands of jobs were lost across the businesses.