The identity of the foreign investor is unclear but it is thought to be based in Turkey and have connections to the fashion industry possibly through supply.
Founder and managing director Nigel Fisher said the deal had been finalised late last night and that Select was already in the process of paying all of its landlords and suppliers.
He said: "This is a large influx of funds and we have secured 2,000 jobs and saved our suppliers. We will sit down now and look at the direction of the business going forward but there will be no closures of shops."
Directors John Sunderland and Stephen Sugarman have left the business with immediate effect but Fisher will remain as managing director.