Business advisory firm Quantuma has filed proposals for a Company Voluntary Arrangement (CVA) to rescue Genus UK Ltd, known as UK fashion retailer Select.
The proposals were filed in the High Court of Justice on 24 May.
Select fell into administration earlier this month, risking 2,000 jobs across its 180 store portfolio.
Quantuma’s Andrew Andronikou, Brian Burke and Carl Jackson are acting as joint administrators to Select and will oversee the CVA process. The administrators will focus on operating Select with support from its parent company.
According to Andronikou, Select experienced a sharp downturn in fortunes during the end of last year. The sales also remained subdued in early 2019, due to low levels of consumer confidence, Brexit uncertainty and volatile currency.
Andronikou added: “The turnaround plan embarked upon by the management delivered benefits but had not reached sufficient maturity to protect the business from this impact in the market. There remains the opportunity, with the support of its parent company, to bring these to fruition and in doing so return the business to a stable and profitable position.
“As joint administrators, we have arrived at the view that a CVA offers the best outcome for creditors as a whole. 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.
“If the proposal is not approved, it is anticipated that the company will remain in administration and, in the event a suitable offer is not received to acquire the business, we will have to consider ceasing its trading activities.”
Quantuma will hold a meeting on 11 June, with the retailer’s creditors, to vote on the company’s future.
British Property Federation (BPF) finance and commercial policy director Ion Fletcher said: “These situations are never easy, as property owners need to take into consideration the impact on their investors, including those protecting pensioners’ savings via investment into property, as they vote on the CVA proposal.
“Quantuma and Select engaged with the BPF before launching its CVA proposal. This has provided us an opportunity to improve understanding of property owners’ interests and concerns, but ultimately it will be for individual property owners to decide how they will vote on a CVA.”