Lingerie retailer, Ann Summers is reportedly poised to launch a CVA after suffering increased losses in its latest reported year.
CEO of Ann Summers, Jacqueline Gold said the company may consider a CVA as some landlords refused to work in partnership to reduce rents, despite the owning family investing cash into the business.
Losses increased £3 million to £16 million in its most recently reported year, and Gold expects business rates and property costs to increase in 2021.
This latest development comes after the retailer appointed property firm CWM last year to explore options for its store portfolio and to guide its negotiations with landlords for lower rents across its stores.
Ann Summers has around 100 stores in its portfolio and it is understood a CVA would only cover those stores where new terms could not be renegotiated.
Gold said some of the retailer’s landlords have adopted a “pragmatic” approach, whilst others have not and Ann Summers is understood to be outlining CVA proposals in the next week.
She added that landlords have continued to “bury their heads in the sand” and that retailers are left with no choice but to opt for a CVA to solve the issue.
It was revealed over the weekend that men’s formalwear retailer Moss Bros, which operates 125 stores, was also planning to launch a CVA proposal that could result in some store closures.