Another Fast Fashion Retailer Succumbs to Bankruptcy

This U.K.-based womenswear retailer runs out of money and shuts down stores

Christian Saclao

Thu, Apr 3, 2025, 6:47 PM 4 min read

The storefront of a Select Fashion location | ©Image Credit: Select Fashion at Ashton-Under-Lyne/ Facebook

The high street has claimed another victim. Select Fashion, once a staple for budget-conscious shoppers in the United Kingdom, has officially entered Creditor’s Voluntary Liquidation (CVL), marking the end of its operations after years of financial struggles.

What Led to Select Fashion’s Liquidation?

According to The Sun, directors at the fashion brand recommended that Select Fashion enter into a Creditors’ Voluntary Liquidation (CVL) — a process roughly equivalent to Chapter 7 bankruptcy in the United States — where both directors and shareholders agree to wind up a business that can no longer repay its debts. In other words, the company shuts down, and all remaining assets are sold to help repay creditors.

Select Fashion’s liquidation was made official following a creditors’ meeting on the afternoon of March 31. This marks the end of the road for the retailer, which had entered into a Company Voluntary Arrangement (CVA) last summer in an attempt to pay off its debts over time.

Select Fashion Shuts 35 Stores, Leaving Workers Without Pay

The collapse of Select Fashion follows the closure of 35 stores across the U.K., affecting 40 employees who have been left without pay or redundancy packages. The liquidation has left staff reeling, as they were informed that they would not be compensated for the hours worked prior to the closures.

Several of the impacted employees have been advised to seek financial assistance through the government’s Redundancy Payment Service (RPS), which supports workers when their employers are unable to meet redundancy obligations.

According to The Sun, an internal email confirmed that the company had officially collapsed, adding that there would be a “delay” in wage payments.

“Please be assured that your wages will be processed and paid out next week,” read the email. “We are doing everything we can to resolve this matter as swiftly as possible and appreciate your understanding during this difficult time.”

Despite the assurance, workers say they have been met with silence from management and have struggled to get in touch with anyone at the company since the message was sent.

It’s also believed that some staff were promised a temporary payment to cover expenses for the weekend—an amount that, ultimately, was never received. A source close to the situation revealed that during last week’s liquidation meeting, staff were informed that the company’s bank accounts had been ordered frozen, making wage payments impossible.

Is This the End for the Select Fashion Brand?

Despite the company entering liquidation, the Select Fashion brand is set to live on—at least in name. A total of 48 stores will continue trading under the Select banner, following a buyout that allows the brand to keep a presence on the high street.

Recent filings reveal that Essence Fashion Limited has signed a licence trade agreement with Select Fashion, giving it the right to operate under the brand’s name. A director’s report confirms that on February 28, 2025, Select entered into a licensing arrangement with Essence, granting the new entity permission to use Select Fashion’s name and associated assets, including property.

While not much is publicly known about Essence Fashion, records from Companies House indicate it was incorporated in February 2024. Notably, both Essence and Select Fashion share the same director and shareholder: Emre Gonc, suggesting a close link between the two operations.

This is not the first time Select Fashion has undergone a change in ownership. The retailer previously entered administration in 2019 and was subsequently acquired by Genus UK Limited, a company owned by Turkish entrepreneur Cafer Mahiroğlu.

The Fast Fashion Crisis

Select Fashion’s downfall is just the latest chapter in an ongoing crisis that has gripped the fast fashion industry in both the U.K. and the U.S. Once fueled by rapid production cycles and low-cost clothing, the sector is now facing an existential threat as shifting consumer habits, rising operational costs, and economic pressures push more retailers to the brink.

In the U.K., the high street has been particularly hard-hit, with brands like Topshop, Missguided, and Joules all collapsing in recent years due to financial strain. The rise of ultra-fast fashion giants like Shein and Temu has intensified the competition, undercutting traditional retailers with even lower prices and faster turnaround times. Meanwhile, growing awareness of sustainability issues has led some consumers to turn away from disposable fashion, further challenging brick-and-mortar chains that once thrived on high-volume sales.

The U.S. market is experiencing similar turbulence. Retailers such as Forever 21 and Express have struggled to stay afloat, with some resorting to bankruptcy filings or major restructuring efforts. Inflation, supply chain disruptions, and shifting preferences toward secondhand shopping and sustainable brands have put additional pressure on mid-tier fashion chains.

As Select Fashion’s liquidation unfolds, it serves as yet another warning sign for the industry—a reminder that the fast fashion model, built on rapid consumption and razor-thin margins, may no longer be sustainable in an era of rising costs and changing consumer priorities. The question now is whether more brands will follow suit or find ways to adapt before it’s too late.