Ann Summers Creditors Approve CVA Moving 25 UK Stores to Turnover-Based Rent

Creditors of Ann Summers, the UK lingerie and adult products retailer that also sells through a home party plan channel, have approved the company voluntary arrangement it proposed on December 4, 2020.

The CVA was backed by 90 percent of creditors. It moves 25 of the company's 91 UK stores to turnover-based rent. Those are the locations where Ann Summers had been unable to agree revised rent terms with landlords. The landlords of the remaining 66 stores, where revised terms had already been agreed, are not affected, and neither are suppliers of goods and services.

The company said no stores will be permanently closed and no jobs will be lost as a result of the arrangement. Following the approval, the Gold family is making up to GBP 10 million in additional funding available to continue the turnaround of the business and support the board's growth plans. FRP Advisory advised Ann Summers on the CVA.

Chief executive Jacqueline Gold said the pandemic had presented new challenges for the business in 2020 that were likely to continue into early 2021. She thanked the suppliers who supported the CVA and the landlords who agreed revised terms ahead of it.

"With our store costs now largely rebased to reflect today's much-changed retail environment, we can not only continue to grow our strong and successful online and Party Plan channels, but our iconic stores will also be able to thrive once conditions return to normal," Gold said.