The British fashion brand has successfully switched to a turnover-based rent model following approval of its CVA.
Apricot launched its CVA at the end of 2020 after failed rent negotiations with landlords. The move will see 13 of Apricot’s 14 store locations switch to turnover-based rents. Closure of the brand’s store or concessions is not part of the CVA.
Apricot is among a long list of British fashion retailers to launch CVAs last year, including names such as Ann Summers, All Saints, Clarks, LK Bennett and New Look, among others all launched CVAs in an attempt to negotiate better deals with landlords.
CVAs and the subsequent switch to turnover-based rent have become increasingly popular, particularly during the Coronavirus pandemic, as a way to monitor individual store performance, allowing continual assessment of store portfolio and aligning rent payments to each individual stores performance.
