Crescent store at risk of closure
A HINCKLEY clothes store could be at risk of closure.
Genus UK, which trades as Select and has a branch in The Crescent, called in a corporate recovery firm last week as it looks to restructure its finances.
The company could be considering a Company Voluntary Agreement which would allow it to close loss making stores and secure rent reductions.
Around 2,000 staff around the country are at risk of losing jobs however no branches have been earmarked for closure as yet.
The announcement comes as other large chains have hit financial problems.
Toys ‘R’ Us and Maplin both recently collapsed while Mother- care, Carpetright and House of Fraser have also announced trading woes.
Andrew Andronikou, partner at corporate recovery firm Quantuma, said: “The business has suffered as a result of the depressed retail market and escalating rent and rate charges.
“This inevitably has caused a squeeze on cash flow resulting in a cash burning for a number of years.
“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”.
Creditors will meet on April 13 to vote on the CVA.
Mr Andronikou added: “The loss of anchor tenants on high streets and in smaller shopping centres has had a downward spiralling effect on stores such as Select, culminating in a reduction of footfall and therefore custom.
“We have carefully considered the formulation of the proposals to present a balanced outcome for both the company and its creditors.
“We are confident that given the current turmoil in this sector the creditors will support the directors’ proposals and prevent another brand disappearing from our high streets.”