Select plans further CVA as lockdown stalls its turnaround
Aug 12, 2020
Struggling fashion chain Select is to launch yet another CVA as it seeks a third round of rent reductions on the back of the pandemic crisis.
The company had come back from administration last year with a deal that allowed 169 stores to stay open but needs to cuts its costs further following the crisis-linked sales plunge.
It’s widely expected that store closures and job cuts will happen as a result of its third CVA.
Owned by Genus, the company had managed to save 1,800 jobs last time and had been hopeful of a turnaround with the business moving back towards profit. But the lockdown scuppered its plans.
Like so many others, the business has withheld rents since the start of the crisis. Reports said its previous CVA deal with creditors that include its landlords was automatically terminated on May 8 after one landlord demanded payment.
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