2,000 Jobs at Risk as Select Considers Store Closures

  • Genus UK, parent company of Select, seeks Company Voluntary Arrangement (CVA) to slash rents in 183 stores
  • 2,000 jobs at risk due to potential store closures
  • CVAs becoming a common option for struggling retailers
  • Creditors will vote on the proposal on April 13

Genus UK, the parent company of fashion retailer Select, is seeking a Company Voluntary Arrangement (CVA) to slash rents in its 183 stores. While the group said it currently has no plans to close any stores, the CVA proposal includes an option for landlords to ‘take back loss-making sites’, which would put around 2,000 jobs at risk. The exact number of stores in danger is unknown. Andrew Andronikou of business advisory firm Quantuma, which is working on the CVA proposal, said the chain had been hit by the ‘depressed retail market and escalating rent and rate charges’. He added that the loss of anchor tenants on high streets and smaller shopping centers has had a downward spiraling effect on stores such as Select, culminating in a reduction of footfall and therefore custom. The position for this business, and many businesses of the same model is no longer tenable and has escalated to the present situation where a CVA is considered to be the only option, other than closing it in its entirety. This news comes just a week after New Look’s creditors approved its own CVA which will see it close 60 out of its 593 stores with 980 staff made redundant.

Factuality Level: 7
Factuality Justification: The article provides accurate and objective information about Genus UK seeking a Company Voluntary Arrangement (CVA) to reduce rents in its 183 stores, the potential risk of job losses, and the reasons behind this decision such as the depressed retail market and escalating costs. It also mentions the upcoming creditor vote on the proposal and recent news about New Look’s CVA. However, it lacks specific numbers regarding loss-making locations and job losses.
Noise Level: 4
Noise Justification: The article provides relevant information about Genus UK seeking a Company Voluntary Arrangement (CVA) to slash rents in its 183 stores and the potential impact on jobs. It also mentions the factors affecting retail businesses like depressed market, escalating rent and rate charges, and loss of anchor tenants. However, it lacks analysis or exploration of long-term trends or possibilities, accountability, scientific rigor, intellectual honesty, staying on topic, evidence, data, examples, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector, landlords and creditors
Financial Rating Justification: The article discusses the financial situation of Genus UK, a fashion retailer, seeking a Company Voluntary Arrangement (CVA) to reduce rents in its 183 stores, which could potentially lead to job losses. This impacts the retail sector, landlords, and creditors who will vote on the proposal. It also mentions New Look’s recent CVA approval that led to store closures and job losses. These events have financial implications for the companies involved and their stakeholders.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk