Ann Summers moves towards CVA

Ann Summers has suggested that it is likely to launch a CVA after the lingerie retailer failed to negotiate rental terms with landlords.

The company has started talks with the British Property Federation, which would likely lead to the beginning of the insolvency process.

More than half of the landlords of Ann Summers’ 90 sites agreed to change to turnover-based rents, however a similar arrangement could not be settled with the remaining landlords.

The retailer confirmed that a final decision on a CVA depends on whether the remaining landlords shift their position in the coming weeks.

This news comes after Ann Summers posted a 14.4% increase in sales in the quarter ending 26 September.

Jacqueline Gold, Ann Summers’ chief executive, said: ‘‘Despite all the challenges of the pandemic, our turnaround plan is progressing well and alongside our successful online and direct selling businesses, we believe our stores have a significant role to play in our future plans.

‘‘However, in order to ensure the business’s stability and to protect as many stores and jobs as possible, it is likely we are going to proceed with a CVA to address property costs – both rent and future business rates – which are no longer appropriate in the post-Covid world.’’

She added: ‘‘I hope that we can count on the support of our landlords and their industry representatives as we embark on this process.’’