Select reportedly planning another CVA

Womenswear brand Select is reportedly planning to launch a third company voluntary arrangement (CVA) to slash rent during the COVID-19 pandemic.

According to The Telegraph, the retailer is working with advisors from Howard Kennedy to secure rent cuts, as it reportedly failed to pay rent since the coronavirus outbreak.

If the CVA takes place, this will be Select's third, after it launched its very first CVA in 2018 and another one last year.

In 2018, the fashion chain slid into administration after a sharp downturn in sales, with the company failing to hit sales targets for the period.

Select negotiated major rent cuts with landlords through a company voluntary arrangement (CVA), but was unable to sufficiently steady the company’s precarious financial situation.

In June 2019, Select went ahead with its second CVA, saving 1,800 jobs and securing 169 stores.

The retailer is reportedly planning to submit new CVA proposals for a creditors’ vote this month.