Select’s creditors have voted through a CVA designed to cut its rental costs and save 2,000 jobs.
The CVA was approved by 94% of Select’s creditors. While Select has no plans to close stores, the CVA does allow landlords to “take back loss-making sites”.
Quantuma partner Andrew Andronikou, who was charged with managing the CVA, 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.”
Select, which has 183 stores, is the latest fashion retailer to be hit by dwindling high street trade following New Look winning 98% support for its CVA earlier this month, resulting in 60 store closures.