Select prepares to launch third CVA

British fashion chain Select is reportedly planning to launch its third company voluntary arrangement (CVA) in a bid to agree rent cuts with landlords.

The company has called in advisors Howard Kennedy to help with the negotiations after it reportedly failed to pay rent since the Covid-19 pandemic hit, The Telegraph reports.

If it goes ahead, it will be the third CVA the company has launched following ones in 2018 and 2019. The CVA last year came after the company fell into administration. The deal saved 1,800 jobs and 169 stores.

However, after failing to pay recent rent, the CVA with creditors was automatically terminated on 8 May.

Select is expected to put forward its CVA proposals for a vote this month.

It comes as UK companies struggle to recover from the impact of lockdown and the loss of sales during the period. In recent months, high street brands like Arcadia, Hotter Shoes and AllSaints have launched CVAs.

Other companies like Harrods, John Lewis and Marks & Spencer have cut hundreds of jobs while the likes of Cath Kidston, Laura Ashley and Debenhams have fallen into administration.

Photo credit: Select Fashion, Facebook