Administrators at Select ask landlords to approve their second CVA proposal

New York – Administrators at British fashion retailer Select – which entered administration in May – are said to have asked the company’s landlords to approve the second company voluntary arrangement they proposed last week.

News broke on Monday that the administrators at the ailing retailer have begun another attempt to implement a second company voluntary arrangement (CVA) to try to cut costs. This insolvency procedure basically serves to reduce property costs by seeking store closures or a reduced rental bill.

As it has transcended, the proposal does not outline the immediate closure of any of the company's stores, and any immediate redundancies, however, some may occur even if the proposal is approved.

This move will prevent Select from having to cease to trade. The plan put forward by joint administrators from Quantuma does not explicitly rule out job losses or store closures, reports ‘Consultancy.uk’.

"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, in addition to entering into discussions with those parties who have already expressed interest in acquiring the business,” said in a statement Andrew Andronikou, one of the joint administrators from Quantuma.