Published: 09:42, 12 June 2019
| Updated: 09:50, 12 June 2019
A high street fashion store has avoided closure and 1,800 jobs been save after a rescue deal was reach by creditors.
The fashion store called in administrators on May 9, because of ongoing financial difficulties.
Genus UK Ltd, which trades as Select, appointed business advisors Quantuma as administrators, but now proposals for a Company Voluntary Arrangement (CVA) for the fashion store have been approved by 87% of its creditors at a meeting in London yesterday.
Select targets 18-35-year-olds with up to 4,000 fashion products, and has an annual turnover of £77m.
In May, Andrew Andronikou, joint administrator at Quantuma, said: “We will continue to trade Select whilst we assess all options available to the business, with the aim of achieving the optimum outcome for all stakeholders.
"Options include a sale of the business as a going concern, in addition to entering into discussions with those parties who have already expressed interest in acquiring the business.
"We will also be assessing CVA proposals which have been put forward by the directors.”
Joint administrators, Mr Andronikou, Brian Burke and Carl Jackson from Quantuma, filed CVA proposals in the High Court of Justice on May 24
The approval secures the current employment of the 1,800 staff and preserves the operation of its 169 stores, centralised head office and warehouse facilities.
Mr Andronikou added: “The approval of the joint administrator’s proposals gives the best outcome for creditors as a whole.
"This will mean no immediate closures of the company’s stores, and no immediate redundancies.
“This should provide a platform upon which the company can deliver changes to its operational costs and structures, allowing it to stabilise and move forwards.
"As widely reported, there are many challenges in the UK retail sector, a factor which has adversely affected the high street.
"We are therefore pleased with the outcome of today’s meeting and the support displayed by creditors in their acceptance of the proposal, which has resulted in the rescue of the business.”
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More by this authorChris Price