Big high street fashion chain goes bust after shutting 35 sites and staff won’t get paid wages

SELECT Fashion has gone bust after shutting 35 stores earlier this month and staff have been told they won't get redundancy page or wages.

Advisers from insolvency firm Moorfields have begun the process of winding up clothing retailer Select Fashion following a creditors' meeting on Friday afternoon.

All 40 staff members at the affected stores will not be paid their weekly wages for the time they worked before the stores closed, nor will they be given a redundancy package.

A number of employees have been told to apply for support through the government's Redundancy Payment Service (RPS).

An email to staff, seen by Flying Eze, details how remaining employees were told the store had officially gone bust and there would be a “delay” in the payment of their wages.

The message continues: “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 message, worried workers have been met with silence and have been unable to make contact since.

It is also understood that some employees were told they would receive a payment to help tide them over for the weekend, but this never came through.

One source close to the matter said staff were told during the liquidation meeting last week that bank accounts used by the troubled fashion brand were instructed to be frozen.

The troubled fashion brand filed a notice last week to confirm it had appointed Moorfields to carry out the liquidation.

Earlier this month, Flying Eze revealed that directors at the fashion brand recommended that Select enter into a Creditor's Voluntary Liquidation (CVL).

This is a process where both directors and shareholders at a firm agree to wind up a business that cannot repay its debts.

The company is shut down and all remaining assets are sold off to help pay back creditors.

The liquidation has now been made official following a creditors' vote at last week's meeting.

It marks the end of Select Fashion LTD, which last summer entered into a Company Voluntary Arrangement (CVA), meaning it was put on a plan to help pay off its debts.

Just a few weeks ago, the brand closed 35 of its 83 stores across the UK in a move which impacted 40 staff members.

However, the brand name will live on, as 48 stores will continue to trade as Select after they were bought out by a mystery business.

Filings last month showed that Essence Fashion Limited has entered into a licence trade agreement with Select Fashion.

A director's report details how the company entered into a license to trade with Essence on February 28, 2025.

This means the business has permission to use the Select Fashion name and other assets, such as its property.

Little is known about the firm, but filings on Companies House show it was created back in February 2024.

Select and Essence also have the same director and shareholder, Emre Gonc.

This is also not the first time the Select Fashion brand has changed hands.

Select went into administration in 2019, but was later bought out by Genus UK Limited.

The firm is owned by Turkish entrepreneur Cafer MahiroÄŸlu.

Flying Eze has approached Moorfields and Select Fashion for further comment but has not heard anything back.

TROUBLE ON THE HIGH STREET

Today spells further misery for shoppers who have had to bid farewell to a number of their favourite brands.

The affordable fashion space has suffered in recent years, as brands struggle to keep up online giant such as SHEIN and Temu.

Back in February, Quiz tumbled into insolvency, closing 23 stores.

Even H&M, has shaken up its store estate revealing plans to either close its standalone Monki stores or to integrate the brand with another one of its fashion lines, Weekday.

The Swedish clothing giant has also confirmed plans to close its Arket store in the Bullring on April 6.

New Look is ramping up a store closure programme ahead of April's National Insurance hike.

Approximately a quarter of the retailer's 364 stores are at risk when their leases expire.

This equates to about 91 stores, with a significant impact on its 8,000-strong workforce.

The company has restructured its store estate twice in the past six years, reducing its portfolio from around 600 UK stores in 2018.

It also closed all of its 26 stores across Ireland, marking the end of a two decade tenure in the country.