Ann Summers secures approval for CVA plan for 25 stores
Creditors of Ann Summers have approved a plan which would slash rents at two dozen of its stores.
The lingerie and sex toys retailer said that 90% of votes had been cast in favour of its Company Voluntary Arrangement, which switches 25 of its stores onto turnover-base rents.
The firm had already agreed new rents with the landlords at 91 of its other branches, it confirmed earlier this week when announcing the plan.
Following the CVA, Ann Summers has also secured up to £10 million of new funding to help with a turnaround plan, and finance the path to growth that the board thinks it can walk. No jobs will be lost, or stores closed as part of the CVA.
Ann Summers CEO Jacqueline Gold said: "This has been a year like no other for Ann Summers. The pandemic has presented new challenges for our business in 2020, which are likely to continue into the early part of 2021.
“I’d like to place on record my thanks to all those suppliers who have supported the CVA, and to those landlords who agreed revised terms ahead of the CVA.
“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.
“There is 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.”