It is understood that insolvency firm Moorfields has launched a wind down of the Select Fashion after a creditors' meeting was held last Friday to approve a voluntary liquidation.
None of the 40 staff members at the affected stores will be given a redundancy package or will be paid for the time they worked before the stores closed, the Sun reports
Employees at the remaining 48 shops have also reportedly been warned their wage payments will be delayed.
A number of employees have been advised to apply for support via the government's Redundancy Payment Service (RPS).
An email sent to staff reveals how employees were told the chain had officially gone bust and that there would be a 'delay' in their wages.
The letter reads: '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.'
Following the email, workers have been met with silence after receiving the news and have been unable to make contact since. The liquidation process of Select Fashion has been started by advisers from insolvency firm Moorfields following a creditors' meeting on Friday afternoon
The liquidation process of Select Fashion has been started by advisers from insolvency firm Moorfields following a creditors' meeting on Friday afternoon
None of the 40 staff members at the affected stores will be given a redundancy package or will be paid for the time they worked before the stores closed
More than 13,000 shops closed their doors for good in 2024 ¿ an increase of 28 per cent on the year before
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Some workers were reportedly expected to receive a payment to see them through the weekend but this was never made.
A source close to the liquidation process said staff were told in a meeting last week that the chain's bank accounts were instructed to be frozen.
The brand filed a notice last week confirming it had appointed Moorfields to carry out the liquidation.
Directors at the company recommended that it should enter into a Creditor's Voluntary Liquidation (CVL), the process where both directors and shareholders agree to wind up a business that is unable to repay its debts.
The chain's liquidation was made official following a creditors' vote at a meeting held last week.The brand closed 35 of its 83 stores a few weeks ago, in a move which impacted 40 staff members. At its peak, Select Fashion operated 169 stores.
However, 48 Select Fashion stores will remain trading after being bought out by a unknown business. Essence Fashion Limited entered into a licence trade agreement with Select Fashion, filings last month detail.
The brand closed 35 of its 83 stores a few weeks ago, in a move which impacted 40 staff members. At its peak, Select Fashion operated 169 stores
The brand closed 35 of its 83 stores a few weeks ago, in a move which impacted 40 staff members. At its peak, Select Fashion operated 169 stores
A director's report reveals how the Select Fashion entered into a license to trade with Essence Fashion on February 28, 2025.
This allows the company is able to to use the Select Fashion name and other assets, such as its property.Not much is known about Essence Fashion but documents on Companies House reveal it was first created in February 2024.
The two companies also have the same director and shareholder, Emre Gonc.
It comes after the Select Fashion fell into administration in 2019, with the retailer blaming tough economic conditions on the high street.
Select Fashion, owned by Turkish entrepreneur Cafer Mahiroğlu, was later bought out of administration by Genus UK Limited.
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 Fashion entered into a Company Voluntary Arrangement (CVA) last summer, with other retailers having followed this route, including New Loo
The chain entered into a Company Voluntary Arrangement (CVA) last summer, according to recent filings on Companies House.
A CVA is a way of restructuring that allows a company to negotiate with its creditors to pay off its debts, such as reducing rent costs with landlords.
Other fashion retailers that have entered into a CVA in recent years include New Look, Jigsaw and Hotter Shoes, as well as Caffe Nero and Body Shop.
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.
The last year has also seen major retailers across the sector that have struggled financially or been forced to close stores, including Ted Baker, Matches, Muji and Farfetch.
The latest troubles for Select Fashion follow new data that more than 13,000 shops closed their doors for good in 2024 – an increase of 28 per cent on the year before, MailOnline reported in January.
Industry experts say there is worse to come, with a predicted 17,350 shops shutting in 2025.
It is the highest figure since the Centre for Retail Research (CRR), which compiled the report, began collecting the data in 2015 and follows the closure of 13,479 stores last year.
The vast majority of closed shops in 2024 – 11,341 – were independent retailers, a 45.5 per cent jump against the previous year.
MailOnline has approached Select Fashion and Moorfields for comment. Which 35 Select Fashion stores have closed?
Birkenhead,( 2)Thornby (3) Middlesbrough (4) Hull Hessle (5) Ashington ( 6) Scunthorpe
(7)Peterlee Hull St Stephen's b(8) Scarborough (9) Hatfield (10)Wellingborough
(11)Witham (12)Bristol Broadmead (13)Bristol Broadwalk Shopping Centre
(14)Torquay (15) Newport (16) Eastleigh (17)Southampton (18)Chippenham
(19)Port Talbot (20)Merthyr Tydfil (21)Hemel Hempstead (22)Worksop (23) South Shields
Coalville ,Kidderminster ,Crewe ,Bletchley ,Wolverhampton ,Hartlepool , Cowley
Preston, Accrington ,Ashton-under-Lyme and Runcorn
