Fashion chain Select’s non-preferential creditors, including suppliers and landlords, are owed more than £53m, a report from administrator Quantuma has shown.
Select fell into administration for the second time in 18 months on 9 May, and appointed Andrew Andronikou, Brian Burke and Carl Jackson of advisory firm Quantuma as joint administrators.
In June, the womenswear chain successfully passed its company voluntary arrangement, after 87% of the chain’s creditors and landlords gave the restructuring the green light.
Among the suppliers owed the most are:
- RB Fashion: £1.2m
- Rocco Fashion: £1.2m
- SC Solo Textil SRL: £2.4m
- Shah Knit: £1.07m
- Texarena Global Sourcing: £1.3m
- Total Apparel: £1.27m
Select’s CVA approval secured the current roles of its 1,800 employees and preserved the operation of its 169 stores, centralised head office and warehouse facilities.
Rent reductions across stores will range from having no impact to reductions of 30%, 50% and moving to rent free.
This is the second CVA launched by Select in just over a year. The chain entered into a CVA last April, which enabled it to cut its rents by up to 75%.
Select’s turnover was £116.7m for the 18 months to 2 December 2017, and it made an operating loss of £15.5m. This compared with a turnover of £81.26m for the 12 months to 4 June 2016, and an operating loss of £1.5m.
CEO Cafer Mahiroğlu told Drapers that his focus is now on customer experience, national marketing and talent investment to return the womenswear chain to profitability.
Select and Quantuma have been contacted for comment.