A major high street retailer is set to shut down dozens of stores in the UK as Britain’s store closures crisis continues to sweep the nation.
Select Fashion is reportedly facing liquidation after closing 35 shops across the country, according to The Sun.
The women’s clothing retailer has appointed advisers to oversee the liquidation process, according to documents seen by the Sun.
It is understood that the chain has quietly trimmed down its estate since the start of the year, with dozens of shops set to be shuttered by this weekend.
Restructuring specialist firm Moorfields has been tasked with overseeing the liquidation process for the Select Fashion brand.
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A major high street retailer could be leaving the high street
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Select entered into a company voluntary arrangement last year, which allowed the business to continue trading whilst paying off debts to creditors over a fixed period. This process was also overseen by Moorfields.
However, the firm has now been appointed to handle liquidation instead, which occurs when a business is wound up because it cannot repay its debts.
Select Fashion could not be reached for comment. Moorfields was not immediately available to respond to enquiries about the situation.
The company reported a pre-tax loss of £1.1million for the year to the end of February 2023, according to its most recently-filed accounts. Select previously highlighted several challenges facing the business.
These included being squeezed by the cost-of-living crisis, which has impacted customer spending. The retailer also cited wage pressure and higher taxes as significant hurdles.
These difficulties came on top of what the company described as a tougher economic climate overall. Select fell into administration in 2019, before being rescued by Genus UK.
The retailer is now owned by Turkish businessman Cafer Mahiroglu. This marks the second significant financial crisis for the fashion chain in recent years.
Despite surviving its previous administration through acquisition, the company has continued to face mounting financial pressures.
The current liquidation process suggests the business has been unable to overcome the challenges that led to its earlier financial difficulties.
It comes after fashion chain Quiz shut 23 stores last month after falling into administration. Quiz similarly cited higher cost of living affecting customer spending.
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Several high-profile administrations have already occurred in 2024. These include Homebase, Carpetright and The Body Shop.
All three businesses were bought out of administration.
However, thousands of jobs were lost across these retailers despite the rescue deals.
