AllSaints CVA approved by creditors

AllSaints has had its two proposed CVAs, for its US and US arms, overwhelmingly approved by its creditors.

Some 93% of creditors voted in favour of the CVA in the UK, and 90% for the US CVA, which is comfortably above the 75% required threshold.

News that the premium fashion retailer was proposing its CVAs was revealed last month as the company, which operates 41 stores in the UK and 42 in the US, sought to reduce rents and switch the majority of its store estate to turnover-based rent deals.

At the time the company said it was possible a small number of unprofitable stores might be closed as part of the process. In total AllSaints trades from 255 stores in 26 countries and employs more than 3,000 people.

Alvarez & Marsal managing directors Richard Fleming and Mark Firmin were appointed to oversee the process.

After the successful vote, Peter Wood, CEO of AllSaints, said: “I would like to express my sincere gratitude to our teams, suppliers and other partners around the world for their overwhelming support during this process. We are also delighted that the majority of our landlords across the UK, EU, US and Canada voted in favour of our proposals, and would like to thank them for their patience and understanding.

"The decision to launch the CVAs was not taken lightly, and this successful outcome will be instrumental in helping us to ensure the long-term viability of AllSaints.”

Leases on AllSaints' US and Canada stores are handled by its AllSaints USA subsidiary, however since the entity is registered in the UK, it is eligible to participate in a CVA.

The company said it had taken a number of steps to mitigate the effects of the COVID-19 crisis, such as accessing government support, maximising online sales, cutting costs and discretionary spend, but it had been left with no choice but to seek a compromise with its creditors.