Select Retail, the women’s fashion chain, has been saved from the brink of collapse in a lifesaving deal that secures the jobs of more than 1,800 staff.

Nigel Fisher, the founder and managing director, told Times Online this morning that a Turkish investor had taken a 70 per cent stake in the business for £13 million.

He refused to reveal the identity of the new backer.

The struggling 250-store chain was within days of administration. It had already lined up Deloitte to advise it on its finances and act if rescue talks had failed.

Mr Fisher said: “A deal has been concluded which means we have managed to save 1,800 jobs and keep all 250 stores open.

“We are delighted and feeling much more secure now.”

Select had been in talks with a potential ‘white-knight’ investor for three months last year after a dismal summer, but these negiotiations collapsed on Christmas Eve.

HBOS, the company’s bank, would only renew an existing overdraft facility if new funding could be brought into the business.

Mr Fisher said: “We were very fortunate that we were able to find someone else. The whole deal has been concluded in four days.” He added: “We have had terrific support from our suppliers who have also helped with the funding.”

Two directors, John Sunderland and Stephen Sugarman, are leaving the business. John Hannah, the former New Look managing director, has been appointed.

Mr Fisher’s stake has fallen to 30 per cent.

There was growing speculation that Select had not met its December rent obligations and had not yet ordered stock for the spring and summer season. Bailiffs had already gone into a handful of its stores.

Industry experts believe up to a dozen retailers could collapse in the first quarter of 2008 given the deepening financial gloom. Nine fell in the first three months of 2007 including the Greeting Card Group and MVC, the music chain.

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