The encyclopedia · Strategy & Leadership · Strategic decision · 2024–2025
Select Fashion built 105 stores over 40 years — and closed every one in 2025
The UK value fashion chain went into liquidation in April 2025 — 35 final stores closed, 105-store network wiped out, staff lost wages
Select Fashion · 2025-04
What happened
Select Fashion was founded in the early 1980s by Turkish entrepreneur Cafer Mahiroglu, growing from a single London store into a UK value fashion chain with 105 shops at its peak. It sold affordable women's clothing targeting budget-conscious shoppers, competing with brands like Primark and Peacocks on price rather than fashion-forwardness.
The brand had already collapsed once: in 2019, it entered administration and was rescued by Genus UK, which restructured the debt and kept the stores open. But the underlying business did not change. Select operated on thin margins in a segment where Shein and other ultra-fast online retailers were vacuuming up foot traffic. A 2024 Company Voluntary Arrangement (CVA) attempted to reduce rent costs through Moorfields Advisory, but the savings were insufficient. The most recently filed accounts showed a pre-tax loss of £1.1 million.
In early 2025, Select began shutting stores at speed. On 14 March 2025, 35 stores were closed. On 28 March 2025, Select confirmed its final trading day. The company entered a Creditors' Voluntary Liquidation (CVL) in April 2025, with Michael Solomons and Andrew Pear of Moorfields appointed as joint liquidators. Staff were told by email that salary payments would be delayed. Approximately 48 of the former Select stores were acquired by Essence Fashion, but the Select brand itself was liquidated.
Why it happened
- Select Fashion's value-priced model relied on high foot traffic and razor-thin margins — both were destroyed by the shift to online ultra-fast fashion
- The 2019 administration rescue and 2024 CVA only delayed the inevitable: they reduced costs but did not change a business model that was structurally unprofitable
- At £1.1M in pre-tax losses, the business was too small to attract a buyer who would preserve the brand — liquidation was the only exit
- Staff were informed of the collapse by email with delayed wages, revealing that the company had no working capital to wind down in an orderly way
The lesson
A rescue that only restructures debt without changing the business model is an expensive pause — the second failure is faster and more complete than the first
Aftermath
Select Fashion was liquidated in April 2025 through a Creditors' Voluntary Liquidation overseen by Moorfields Advisory. The brand's assets were sold to repay creditors. Approximately 48 of the former stores were taken over by Essence Fashion Limited, but the Select brand name ceased to trade. Staff experienced delayed salary payments during the closure. Cafer Mahiroglu's 40-year retail business ended with no stores, no brand, and no working capital left.
Sources
- Drapers — Select Fashion confirms final trading day (Mar 2025)
- Retail Gazette — Select Fashion on the verge of collapse with 35 stores to close (Mar 2025)
- Yahoo News UK — Select Fashion collapses following the closure of 35 stores (Apr 2025)
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