Ann Summers mulls CVA as landlords “bury heads in the sand”

Ann Summers Jacqueline Gold CVA

Ann Summers is reportedly expected to launch a CVA after facing increased losses in its recent financial report.

The lingerie and sex toy retailer’s chief executive Jacqueline Gold said the company might opt for a CVA as some landlords refused to work in partnership, despite the owning family injecting cash to keep the business afloat, Retail Week reported.

Losses increased £3 million to £16 million in its most recently reported year, and Gold expects business rates and property costs to increase next year.

Ann Summers is currently dealing with the effects of the Covid-19 pandemic despite the improvement of personnel, IT investment and product.

Gold said some of the retailer’s landlords have taken a “pragmatic” approach, while others have not and Ann Summers is understood to be preparing to unveil CVA proposals in the next week.

She added that landlords have continued to “bury their heads in the sand” and the only way a retailer is able to resolve the situation is to undertake a CVA.

Ann Summers first revealed the prospect of a CVA last year after it won better property terms from landlords on most of its 100-store estate, though some property owners refused to be more flexible.

At the time, Ann Summers’ 95 stores stayed secure, but the remaining five branches were at threat of being put through a CVA.

read the full article here – retailgazette.co.uk