After lot of speculation over when British lingerie label Ann Summers would launch company voluntary arrangement (CVA), it’s finally happened now.
The retailer has announced that it will be launching CVA wherein it plans to cut down rents at 25 of its stores.
Ann Summers has entered into detailed discussions with landlords to shift to turnover-based rents.
The retailer now hopes that with the launch of CVA, its remaining stores too would shift to turnover-based rent model. Notably, it presently runs 91 stores.
Over the last few months, several fashion retailers in the UK have adopted this new model of switching their stores to turnover-based rents.
Only last week, UK-based menswear retailer Moss Bros had launched CVA with the intent to revamp its fixed cost base.
Also Read: Moss Bros launches CVA restructuring deal
Meanwhile, Ann Summers has said that once the CVA restructuring plan gets approved by creditors, it will aim to secure a new funding of £10 million to drive its turnaround.
The retailer has hired FRP advisory to oversee the entire process and will require approval from 75 per cent of landlords during voting later this month.