Ann Summers has confirmed that 90 per cent of its creditors have approved its proposed CVA.
As a result, 25 of its stores will move onto a turnover rent basis.
The landlords of the retailer’s remaining 66 stores will not be affected by the CVA as terms had already been agreed, nor will any other suppliers of goods and services.
No jobs will be lost or stores closed as a result of the CVA.
Following the approval of the CVA, additional funding of up to £10m is being made available to Ann Summers to continue the turnaround of the business and help finance the board’s growth plans.
Jacqueline Gold, chief executive of Ann Summers 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 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 underway.”
Ann Summers is being advised by FRP Advisory on the CVA.
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