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.
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.