The difficult trading conditions have left the retailer considering a company voluntary arrangement (CVA).
Ann Summers is the latest British retailer to have struggles with lower footfall and rent payments and it is understood that the brand will unveil CVA proposals next week to assist in its on-going struggle amid the COVID-19 pandemic.
Jacqueline Gold, Ann Summers CEO has commented that while some landlords have taken a “pragmatic” approach, others continue to “bury their hands in the ground” forcing brands to consider a CVA. She has commented: “Ultimately, no retailer can afford to run stores unprofitably and with business rates set to return next spring the challenge of property costs is going to become even more pressing than ever.”
Ann Summers has tried to work with landlords to change its rent to a turnover-based model and Gold concludes: “We want to work in partnership with our landlords and our interests should be aligned. That’s why we, like many retailers, think turnover-based rents are the way forward.”
