Ann Summers launches CVA in bid to secure turnover-based rents

The sex toy and lingerie retailer has said its CVA will only affect 25 of its stores where the business has been unable to agree on revised rental terms with landlords. It has drafted in FRP Advisory to oversee the process.

Ann Summers aims to secure turnover-based rents at these shops “to enable the risks of the current trading environment to be more equitably shared between the business and its landlords”.

The retailer has stressed that none of the landlords that have already agreed to revised rental terms will be affected by the CVA process.

On condition of the CVA being approved by at least 75% of creditors, Ann Summers will receive £10m in additional funding to continue its turnaround plans and bolster the business’ growth.

The retailer will hold a vote on its CVA proposal on December 23.

Chief executive Jacqueline Gold said: “Ann Summers has a bright future but if the business is to fulfil its potential and prosper in the post-Covid trading environment, we need to align our property costs so they reflect the challenges facing today’s high street. I’m grateful to the majority of our landlords that have worked constructively with us to agree to sensible terms on the vast majority of our stores and these landlords will not be affected by the CVA.

“We continue to invest in our marketing, our product and our brand, and are seeking to protect as many stores and jobs as we can through this process. We have successful and growing online and party plan businesses, and once our store rents are aligned to market levels as a result of this process, we can approach the future with confidence.”