Select, a struggling fashion chain owned by Genus, is facing another round of challenges as it prepares to launch its third Company Voluntary Arrangement (CVA). The company recently emerged from administration last year with 169 stores still open, but the impact of the pandemic has forced them to seek further rent reductions in order to survive.

The COVID-19 crisis has caused a drastic decline in sales for Select, leaving them in desperate need of additional cost-cutting measures. It is anticipated that these measures will include store closures and job cuts as the company tries to navigate the ongoing challenges posed by the pandemic.

Despite successfully saving 1,800 jobs in the past, Select’s hopes for a turnaround and profitability were shattered by the lockdown measures. Like many other businesses, Select has been unable to pay rent since the start of the crisis, and one landlord’s demand for payment led to the automatic termination of its previous CVA deal with creditors on May 8.

The fashion industry has been severely impacted by the pandemic, with retailers struggling to stay afloat. Lockdown measures and social distancing protocols have significantly reduced footfall and consumer spending, leading many companies to resort to CVAs in an attempt to negotiate rent reductions and restructure their businesses.

Select’s decision to pursue another CVA demonstrates the ongoing challenges faced by the retail sector. With uncertain economic conditions and an unpredictable future, businesses must adapt and find new ways to survive in this ever-changing landscape.

The pandemic has forced retailers to reassess their strategies and prioritize cost-cutting measures. Store closures and job cuts have become inevitable as companies try to reduce expenses and focus on more sustainable business models.

While Select’s previous CVA allowed them to keep a significant number of stores open, the current crisis has necessitated further action. By seeking a third CVA, the company aims to renegotiate rent agreements and secure additional financial support.

However, there are challenges ahead. Landlords, already burdened by unpaid rents, may be hesitant to grant further reductions. Additionally, Select will need to carefully evaluate its remaining stores and assess their viability in the current market.

The fashion industry is likely to undergo significant transformation in the post-pandemic world. The increase in online shopping and changing consumer behavior will require retailers to adapt and innovate. Companies will need to create immersive online experiences, invest in e-commerce capabilities, and prioritize sustainability to thrive in the new normal.

Select’s decision to launch another CVA reflects the resilience and determination of the company. Despite the setbacks caused by the pandemic, they remain determined to weather the storm and overcome the challenges they face. Only time will tell if their efforts will lead to a successful turnaround and a brighter future for the struggling fashion chain.

Ultimately, the success of Select’s third CVA depends on various factors, including creditor support, landlord willingness to negotiate, and the company’s ability to adapt to the changing retail landscape. As the industry continues to navigate these unprecedented times, the survival and revival of fashion retailers will require strategic decision-making and a strong focus on customer needs. Only time will tell if Select can emerge stronger from this crisis and reclaim its position in the market.

Useful links:
1. Retail Gazette: Retailers stumble towards CVAs to secure rent cuts
2. The Guardian: Struggling retailer Select Fashion plans third CVA rescue deal