The Company Voluntary Arrangement (CVA) for high street fashion chain Select has been approved by 94% of its creditors at a meeting in central London this morning.
The company does not intend to close any stores and the vote means the saving of 2,000 jobs.
The proposals were formulated by the directors of Select, with the assistance of partners Andrew Andronikou, Andrew Hosking and Carl Jackson of corporate restructuring and business advisory firm Quantuma.
Select operates from 183 stores across the UK supported by centralised head office and warehouse facilities, plus online trading. The company trades as a value ladies’ fashion retailer, targeting 18-35-year-olds with up to 4,000 fashion products.
Andrew Andronikou said: “The proposal primarily seeks to obtain the 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, which appears to reflect the current prevailing issues for businesses trading on the high streets.
“The company is committed to protecting employment and following the acceptance of the proposal, will seek to continue to operate 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.
“We are naturally pleased with the outcome of today’s meeting and the subsequent result.
“We look forward to working with the creditors in the near future in order to pay their dividend and are delighted that the acceptance of the proposal should see some 2,000 jobs preserved in the UK retail sector.”
Notes to Editors
Quantuma LLP is a leading corporate restructuring, insolvency and business advisory firm delivering partner-led solutions to businesses and individuals facing financial distress with offices in London, Southampton, Marlow, Watford, Brighton, Birmingham, Bristol, Manchester, Ringwood and Weymouth.
Company Voluntary Arrangements
A CVA is a legally binding, formal process enabling a compromise to be entered into between a company and its creditors, based on a vote passed by a majority of creditors greater than 75%, by value, of those voting on the proposal.