British fashion retailer Ann Summers has confirmed it is launching a company voluntary arrangement (CVA) to cut rents at around 25 of its stores. The fashion chain, which operates 91 stores, has already revised rental terms on its other stores following discussions with landlords in recent months. The move is accelerated by today’s “much-changed market conditions”. No store closures are planned. The retailer will also seek to secure €11m (£10m) funding for its turnaround plan if the CVA plan is approved by creditors.
Jacqueline Gold, chief executive of Ann Summers, said: "Ann Summers has a bright future but if the business is to fulfil its potential and prosper in the post-Covid trading environment, we need to align our property costs so they reflect the challenges facing today’s high street. I’m grateful to the majority of our landlords who have worked constructively with us to agree sensible terms on the vast majority of our stores, and these landlords will not be affected by the CVA. We continue to invest in our marketing, our product and our brand, and are seeking to protect as many stores and jobs as we can through this process. We have successful and growing Online and Party Plan businesses, and once our store rents are aligned to market levels as a result of this process, we can approach the future with confidence."