Shops in Norfolk saved as Select landlords agree to cut rent
PUBLISHED: 10:06 13 June 2019 | UPDATED: 16:33 19 June 2019
Photo: David Peace/Wikimedia
Fashion stores across Norfolk have been saved after landlords agreed to axe rents for the brand.
Select women's fashion retailer fell into administration on May 9.
The news put the jobs of 1,800 employees on the line and risked closing its 169 stores.
These stores would have included those in Norwich's Castle Mall, as well as in Great Yarmouth's Market Gates, Thetford's King Street and King's Lynn's Vancouver shopping centre.
Select's news comes just a day after retail giant Arcadia secured a handful of CVAs - securing its future.
It is just one of a raft of high street stores which has carried out CVAs, including Jamie Olivers and Carpetright, as high street sales declined.
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CVAs are agreements between landlords and tenants which allow rent to be cut to avoid losing the shop entirely.
Ratula Chakraborty is a professor of business management at the University of East Anglia.
She said: "The high street is declining but not failing. As more consumers shop online then there is less need to go to physical stores. The online shopping trend is set to increase further as home delivery becomes faster and better.
"Further decline in the high street is inevitable, but many shoppers will continue to use physical stores for years to come."
She continued: "It is not easy to spot the next failing retailer, only that certainly more will follow unless they can negotiate reductions in shop rents and maintain good customer loyalty."
Joint administrators for Select, Andrew Andronikou, Brian Burke and Carl Jackson of Quantuma, filed CVA proposals in the High Court of Justice on 24 May 2019.
Andrew Andronikou, joint administrator, said: "The approval of the joint administrator's proposals gives the best outcome for creditors as a whole. This will mean no immediate closures of the company's stores, and no immediate redundancies."
"As widely reported, there are many challenges in the UK retail sector, a factor which has adversely affected the high street. We are therefore pleased with the outcome and the support displayed by creditors in their acceptance of the proposal, which has resulted in the rescue of the business."