Select Fashion ‘collapses, leaving staff without pay’

Retailer Select Fashion has reportedly collapsed after closing 35 stores last month and left staff without redundancy pay or owed wages.

It is understood that insolvency firm Moorfields has launched a wind down of the womenswear chain after a creditors’ meeting was held last Friday to approve a voluntary liquidation.

The group had already shut 35 shops in mid-March having quietly trimmed down its estate since the start of the year.

Workers at the shops that shut have been told that they will not be paid outstanding wages for hours worked before the closures and many have been advised to apply for redundancy pay from the Government, according to The Sun.

Employees at the remaining 48 shops have also reportedly been warned their wage payments will be delayed.

In an email seen by The Sun, Select Fashion is reported to have told employees: “Please be assured that your wages will be processed and paid out next week.

“We are doing everything we can to resolve this matter as swiftly as possible and appreciate your understanding during this difficult time.”

Select Fashion could not be reached for comment and Moorfields was not immediately available to comment.

Select had already entered into a company voluntary arrangement last year – whereby a business in distress has the opportunity to pay off debts to creditors over a fixed period of time, while still continuing to trade.

The process was also overseen by Moorfields.

Select fell into administration in 2019, before being rescued by Genus UK. It is now owned by Turkish businessman Cafer Mahiroglu.

The company reported a pre-tax loss of £1.1 million for the year to the end of February 2023, according to its most recently-filed accounts.

It previously flagged it was being squeezed by the cost-of-living crisis, wage pressure and higher taxes, on top of a tougher economic climate.

Select’s troubles follow several collapses and closures on the high street in recent months.

Rival fashion chain Quiz shut 23 stores in February after falling into administration, with the retailer also citing the higher cost of living squeezing spending among its customers.