Select is a value ladies’ fashion retailer, targeting 18-35-year-olds with up to 4,000 fashion products. The company operates from 183 stores across the UK supported by centralised head office and warehouse facilities, plus online trading. In the year to June 2016, Genus UK Ltd made a loss of £1.5m on sales of £81m.

Quantuma partners Andrew Andronikou, Andrew Hosking and Carl Jackson have assisted the board of directors to formulate proposals for a CVA, which were filed at the High Court of Justice on 26 March.

These include obtaining approval from a number of the company’s landlords to accept a reduction in rent for some stores with an option to take back loss-making sites.

Quantuma says the company is committed to preserving employment and, subject to acceptance of the proposal, will continue operating all of its UK sites. 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.

Andrew Andronikou, Quantuma partner, said: ‘The business has suffered as a result of the depressed retail market and escalating rent and rate charges. This inevitably has caused a squeeze on cash flow resulting in a cash burning for a number of years.

‘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’.

Andronikou said 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.

‘We have carefully considered the formulation of the proposals to present a balanced outcome for both the company and its creditors. We are confident that given the current turmoil in this sector the creditors will support the directors’ proposals and prevent another brand disappearing from our high streets,’ he said. 

A creditors’ meeting has been convened for 13 April at which the company’s creditors will vote and determine the company’s future.

This year has seen a number of well-known names on the high street collapse, including Toys R Us, Maplin, Warren Evan and Feather & Black.  Department store chain House of Fraser is also reported to be in talks to raise £40m of additional funding, after disappointing Christmas trading both online and in store.

Report by Pat Sweet