Ann Summers has verified it is launching a company voluntary arrangement (CVA) following “extensive” discussions with landlords.
The business is trying to find to rebase its assets expenses to mirror today’s “much-transformed current market conditions” by moving to a turnover-based hire model.
Only twenty five of its 91 outlets will be impacted by the CVA, as revised terms have been agreed with landlords on the relaxation of the estate. No retailer closures are planned.
Matter to the successful acceptance of the CVA, further funding of up to £10m will designed available to Ann Summers to carry on the turnaround of the business and aid finance the board’s thrilling advancement designs.
Jacqueline Gold, chief govt of Ann Summers, reported: “Ann Summers has a bright long term but if the business is to fulfil its possible and prosper in the write-up-Covid investing atmosphere, we have to have to align our assets expenses so they mirror the problems facing today’s substantial avenue. I’m grateful to the the vast majority of our landlords who have worked constructively with us to concur smart terms on the large the vast majority of our outlets, and these landlords will not be impacted by the CVA.
“We carry on to make investments in our marketing, our product and our manufacturer, and are trying to find to guard as lots of outlets and work opportunities as we can by this procedure. We have successful and escalating Online and Bash Program corporations, and once our retailer rents are aligned to current market amounts as a final result of this procedure, we can technique the long term with self-assurance.”
Ann Summers is staying recommended by FRP Advisory on the CVA and necessitates the help of 75% of creditors in purchase to continue. A creditors’ assembly to vote on the proposal will be held on 23 December.