Genus UK, which trades as Select, has sought advice from corporate recovery and business advisory firm Quantuma on a Company Voluntary Arrangement (CVA) following tough trading period.
Quantuma has assisted the fashion retailer to formulate and file the CVA proposals at the High Court on 26 March.
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The proposal seeks to get approval from a number of company’s landlords to accept a reduction in rent for some of its stores across England and Wales with an option to take back loss-making sites.
Select currently operates 183 stores in the UK, and employs around 2,000 members of staff.
Quantuma partner Andrew Andronikou said: “The business has suffered as a result of the depressed retail market and escalating rent and rate charges. This inevitably has caused a squeeze on cash flow resulting in a cash burning for a number of years.
“The position for this business, and many businesses of the same model, is no longer tenable and has escalated to the present situation where a CVA is considered to be the only option, other than closing it in its entirety.”
A creditors’ meeting has been called for 13 April, at which the company’s creditors will vote and determine the company’s future.
In the year to June 2016, Genus has made a loss of £1.5m on sales of £81m.
Last week, New Look’s announced it will close 60 of its stores with eight in Wales as creditors approved its CVA, while last month, Toys R Us and Maplin both entered administration, risking over 5,000 jobs.
