Fashion Retailer Struggles with Losses and Unpaid Debts

  • Select owes creditors £53.1m following administration
  • Loss of £15.5m on sales of £117m in 18 months
  • Only £1m cash in bank and £2.8m worth of stock at time of administration
  • Landlords seeking to reclaim £3.5m in unsecured non-preferential claims
  • Over £2.3m owed to HMRC, including unpaid VAT
  • 169 stores and 1,800 staff
  • Retailer bought by Turkish entrepreneur Cafer Mahiroglu in 2008
  • Parent company Ozdemir also owes £2.9m as part of administration
  • Secured second company voluntary arrangement (CVA) in June

Fashion retailer Select owed creditors £53.1 million after entering administration in May, including landlords and HMRC. The company reported a loss of £15.5 million on sales of £117 million over an 18-month period. At the time of administration, Select (under the name Genus UK) had only £1 million in cash and £2.8 million worth of stock. Landlords are seeking to reclaim nearly £3.5 million as part of unsecured non-preferential claims, while HMRC is owed over £2.3 million, including unpaid VAT. Select, with 169 stores and approximately 1,800 employees, was purchased by Turkish entrepreneur Cafer Mahiroglu in 2008. The retailer’s parent company, Ozdemir owned by Mahiroglu, also owes £2.9 million as part of the administration process. This comes after Select secured a second company voluntary arrangement (CVA) in June.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Select’s financial situation, including losses, debts owed to creditors and HMRC, cash on hand, stock value, number of stores, and staff. It also mentions the involvement of Turkish entrepreneur Cafer Mahiroglu in the company’s ownership history.
Noise Level: 7
Noise Justification: The article provides relevant information about Select’s financial situation and its debts to creditors and HMRC, but it lacks analysis or exploration of long-term trends or possibilities. It also does not offer actionable insights or new knowledge for readers.
Financial Relevance: Yes
Financial Markets Impacted: Retail and fashion industry
Financial Rating Justification: The article discusses financial losses, debts owed to creditors and HMRC, and the impact on Select’s parent company Ozdemir owned by Cafer Mahiroglu. It also mentions the retailer’s administration process and a second company voluntary arrangement.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk