Gloucester's Select store will remain trading - for now
By James Young | 28th May 2019
The Gloucester Select store will remain open and trading - for now - while administrators seek to find a rescue package for then and the 166 other stores across the country.
The struggling fashion retailer which has outlets in Eastgate Street Gloucester announced it was entering administration in April.
Last week, business advisory firm Quantuma filed proposals for a Company Voluntary Agreement to rescue Genus UK Ltd in the High Court.
Genus UK Ltd trade as 'Select' and will continue to operate all 169 stores, its head office and warehouse facilities and continue to trade online.
Select who trade as a value ladies fashion retailer targeting 18-35-year-olds, sells up to 4,000 products from its stores, and employs 1,800 people.
The CVA proposal does not propose the immediate closure of any of the chain's stores or any immediate redundancies.
However, a meeting has been convened for June 11 at which the company's creditors will vote on the future.
Andrew Andronikou, partner at Quantuma and one of the administrators, said: "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."
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