Select - Another one bites the dust

All,

Continued negative news for British retail - including our anti cyclical positions in New Look, Matalan and to an extent Iceland.

The Retail Gazette reports this morning that: "Select is due to go into administration on Thursday morning, while advisory firm Quantuma has been appointed to handle the administration. The fashion retailer is expected to collapse before taking out a second CVA in the next two weeks. Select had taken…

Select had taken out a CVA last April, which resulted in it being able to cut rent costs by up to 75 per cent and save almost 2000 jobs. “The company will announce on Thursday that it will be going into administration,” Quantuma partner Andrew Andronikou said. “Then in another two or three weeks it will announce proposals to creditors for another CVA. There are no plans to close any stores or make redundancies.” The news follows Select’s decision to file a notice of intention to call upon administrators at the High Court last month. Current owner of the fashion chain, Cafer Mahiroğlu bought Select out of administration in 2008. The company has also reported a loss of £15.5 million in the 18 months to 2 December. Select currently employs around 2000 staff members and has around 170 stores."

Wolfgang