Ann Summers saves all its stores with CVA approval, secures funding
Another day, another retail survival. Ann Summers is the latest troubled UK retailer to have escaped closure, as its Company Voluntary Arrangement (CVA) was approved by creditors Wednesday.
The 91-store lingerie and sex toy retailer said 90% of creditors agreed to the CVA and the business can now press ahead with a reorganisation that will see 25 more of its stores move to turnover-based rental agreements.
Ann Summers also said an additional £10m in funding had been made available to the retailer to continue with its turnaround plans.
The latest ruling will not affect landlords of 66 stores that had previously agreed turnover-based rent terms. Ann Summers also confirmed there would be no job losses and none of its suppliers will be affected.
Chief executive Jaqueline Gold said: “There is a still a very important place on the British high street for Ann Summers, and with our store costs now largely rebased to reflect today’s much changed retail environment, we can not only continue to grow our strong and successful online and party plan channels, but our iconic stores will also be able to thrive once conditions return to normal.
“The additional investment in the business will help us continue our development and growth strategy and accelerate the turnaround, which is already well under way”.
As with many retailers, Ann Summers had said the pandemic had “presented new challenges for our business in 2020, which are likely to continue into the early part of 2021.
“Despite the ongoing impacts of Covid-19, with the CVA approved and additional funding in place, we are now able to look to the future with cautious optimism”, she added.
Just this week, footwear retailer Clarks confirmed its survival after a new majority owner agreeing to takeover the business following the approval of its CVA, and women’s fashion retailer LK Bennett also gained CVA approval to continue trading on Wednesday.
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