Fashion chain Select to enter administration.

05/04/2019.

Fashion chain Select has announced plans to enter administration via official court documents, calling into question the fate of over 2,000 jobs at the retailer.

In late March, the clothing chain filed a formal notice of intention to appoint an administrator – a move which prevents creditors from calling in debts for 10 working days and paves the way for the administration proceedings to begin.

Alongside many of its competitors, Select has shown signs of financial strain in recent times, as the fashion retail sector continues to face pressure from rising business costs, low consumer confidence and disruption from e-commerce. Last year, the company entered into a company voluntary arrangement (CVA) in a bid to keep the business afloat by reducing its rent costs – a move taken by so many major UK retailers in 2018 that commentators dubbed it ‘The Year of the CVA’.

Office Outlet enters administration “due to retail sector sentiment”

Conditions remain challenging for physical retailers in general. Elsewhere last month, UK stationery chain Office Outlet went into administration, with administrators from Deloitte looking to find a buyer for the company in order to secure its future. Executives at the chain, which has 90 stores and 1,200 employees across the UK, say that it has suffered due to waning consumer demand and recent changes to key suppliers’ trading credit terms.

Office Outlet chief executive Chris Yates – who led a management buyout of the business in September – said that the company had failed to secure “additional growth capital” from investors “due to retail sector sentiment and the general level of uncertainty.” He nonetheless praised the company’s strides towards modernising in recent years, noting: “Over the last two years the business has been transformed from the heavily loss-making old business to a near break-even modern multichannel retailer.”

Physical retail sales predicted to drop 14% by 2023

As conditions for UK physical retail businesses look set to worsen, many are moving to adapt and transition towards a more online-focused sales model in order to survive. Analysts predict that the amount of money spent in brick-and-mortar clothing stores could drop by as much as £2.4bn – or 14% – between 2018 and 2023, as consumers increasingly make purchases online.

Last month, major department store chain Debenhams announced plans to close a number of stores across the UK and negotiate to secure rent reductions from landlords, as the business struggles to remain competitive. The company narrowly avoided entering administration in March after agreeing a £200m emergency refinancing package with lenders, but will still need to secure help from major shareholders to either buy out the chain or provide funding in order to access the full facility.

Were you a supplier of Office Outlet or Select?

If you were a supplier of Office Outlet or Select then you may suddenly have realised that selling on credit to large blue chip retailers isn’t as secure as you once thought.

Even big names can go insolvent.

Don’t just assume your customers can and will pay you.

Have credit management systems in place to monitor and check your customers credit worthiness.

Could you use a trusted third party like CPA to chase up payments for you?

See the section below – About CPA.

Are you at risk of going into administration?

Your business might be staring down the barrel of insolvency.

Rather than shutting down, do you realise you may have a hidden source of capital within your business waiting to be activated?

If you trade with other businesses and were often paid late then you could be entitled to significant compensation.

Under little known and underused legislation your business could be due huge amounts in compensation that you didn’t even know about.

That compensation could be the cash rescue your business needed.

How can CPA help?

CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hardwork. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.

We do the work, you receive the cash.

If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.

We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.

We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.

CPA is passionate about late payment

The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.

We are passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.

If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.

As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.

Under little used legislation, you are entitled to compensation for those late payments.

Now you can boost your own cash-flow.

CPA can help unearth the those hidden treasures.

We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.

Yes, CPA can help you boost your business cashflow.

Don’t et your bankers control you, contact CPA today.

Read our blog here on how to crack down on the late payment culture.

Read our blog here on how to give late payers the slap they need.

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

About CPA

The Credit Protection Association can help!

Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.

At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.

We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.

Companies in trouble usually have very bad bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.

If you supply to big companies like office outlet or small ones, help us help you identify the risks.

Why use a third party collector?

As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.

Over the years we have collected billions in overdue invoices for our customers.

Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.

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For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

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