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Exclusive: Select expected to launch CVA this week

Fashion chain Select is expected to launch a company voluntary arrangement (CVA) later this week after falling into administration on 9 May, Drapers can reveal.  

Andrew Andronikou, Brian Burke and Carl Jackson of advisory firm Quantuma, were appointed as joint administrators last week. 

Andronikou said: “The CVA is most probably going to be launched at the end of this week or early next week, we are still working on the shape of the CVA.

“I would like to discuss the proposals with the British Property Federation to garnish their views before finalising the proposals and making them public.”

Meanwhile owner of Select, Cafer Mahiroğlu, told Drapers the CVA would allow the business to continue to operate, adding: “There will be no shop closures or redundancies. The economy has been difficult over the last few years, but I know it is set to get better over the next two years.”

Select employs around 1,800 staff and has around 169 stores. There have been no redundancies made as a result of the administration.

It comes after Select filed a notice of intention to appoint administrators at the High Court last month.

The CVA would be the second for the business in just over a year. The chain entered into a CVA last April, which enabled it to cut its rents by up to 75% and saved nearly 2,000 jobs.

Mahiroğlu bought the company out of administration in 2008. 

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 to a turnover of £81.26m for the 12 months to 4 June 2016 and an operating loss of £1.5m. 

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