Ann Summers CVA approved by creditors

Ann Summers has announced that its CVA has been approved by 90% of its creditors, which will see 25 of its stores move to a turnover-based rent system. 

In a statement, the lingerie store outlined the plans of the agreement with additional funding of up to £10m now being made available to the store, in a bid to “continue the turnaround of the business.” 

It was also revealed that previous revised terms with 66 of its landlords will not be compromised because of the deal and no staff redundancies will be made. 

Ann Summers first hinted about entering into a CVA this October after the retailer initially struggled to negotiate rental terms with its landlords. 

The company has now said it has “exciting growth plans” for the future , with Jacqueline Gold chief executive of Ann Summers stating that there is still a “very important place” on the British high street for the store. 

She 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.”