UK trend retailer goes bust as employees are advised ‘you are not getting your wages but’
A UK fashion retailer shared a worrying update with their staff after officially going bust and telling their remaining staff there would be a delay on their wages
A major UK retailer that previously announced they’d be closing several physical stores has gone bust, with staff allegedly being told their wages will be delayed.
Select Fashions, owned by Turkish entrepreneur Cafer Mahiroğlu, has been quietly closing some of its stores since January, following several ongoing struggles facing UK retailers. Earlier this month, the fashion brand closed 35 stores with several people left without jobs. Reports suggest insolvency firm Moorfields have been working on the closure since Friday following a meeting with company officials.
They added that 40 staff members who worked for the store will have a delay on their final wage packet for the time they worked before the stores closed. Adding to this, it seems they will not 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 was sent to staff supposedly seen by the Sun.
Employees were told the store had officially gone bust and there would be a “delay” in the payment of their wages.
The message read: “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.”
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.
Employees also told the publication they tried to contact the brand, but could not get through.
Select Fashion filed a notice last week to confirm it had appointed Moorfields to carry out the liquidation. It is confirmed the company has now completely gone bust.
Several stores across the UK will close. Previously, the listed sites were in Kidderminster, Crewe, Runcorn, Birkenhead, Middlesbrough and Cowley.
After this new round of closures, it is understood that all stores will close, despite 48 stores will remaining fully open in the previous closures. Before the recent string of closures, the British brand had a total of 169 stores and had been on the high street for almost four decades.
Select Fashion previously fell into administration in 2019, which the retailer blamed on tough high street conditions, but they were bought out by Genus UK Limited. They then entered into a Company Voluntary Arrangement (CVA) last summer.
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