The Select clothing store at Westwood Cross will close next month with the loss of 12 jobs.
Staff have received compulsory redundancy notices and been informed that the store is due to shut on a yet to be decided date in October.
The Select business is currently operating under a Company Voluntary Arrangement (CVA) approved in June.
High street fashion chain Genus UK Ltd, trading as Select, previously fell into administration on May 9. Following this, joint administrators, Andrew Andronikou, Brian Burke and Carl Jackson of business advisory firm Quantuma, filed CVA proposals in the High Court of Justice.
The approval secured the current employment of Select’s 1,800 staff and preserved the operation of its 169 stores, centralised head office and warehouse facilities.
However, it has now emerged that The Works has been granted the lease for the unit, reportedly at a higher rental rate.
Staff are ‘devastated’ by the news but one told The Isle of Thanet News: “We will smile until the end.”
The Works has submitted a planning application to Thanet council to replace the shop sign. The firm currently has a store in Margate.
Select, The Works and Westwood Cross have been asked for comment.