Embattled fashion brand All Saints has become the latest retailer to launch a CVA with the hopes of shifting most of its stores over to turnover-based rents.
All Saints initially closed all its stores around the world amid the coronavirus pandemic and put in place measures to maximise online sales, halt discretionary spending and access available government support.
It has now begun to reopen stores with “significant uncertainty around customer appetite to travel and shop in-store”, and is trying to push through a CVA to keep the business secure.
If the proposal is successful, the majority of All Saints’ 41 UK and 42 North American stores would move to turnover-based rent. A small number of stores will also be closed.
The fashion retailer has simultaneously launched CVAs in the UK, the US and Canada.
All Saints chief executive Peter Wood said: “We have taken this step in order to ensure the long-term viability of All Saints in the face of the unprecedented impact that Covid-19 has had on our business and the wider fashion retail industry.
“The CVAs will allow us to sustain a strong physical retail presence, which in turn will allow us to protect jobs and continue to provide great product and service to our customers.
“Prior to the outbreak of the pandemic, we were seeing increased demand for All Saints in every part of the world in which we operate and during lockdown, we have continued to reach new customers via our online channels. The commitment of our global team and the support of our vendors have been fantastic throughout this exceptionally challenging period. As a result, despite the sudden and adverse impact that Covid-19 has had on our sales and our short-term outlook, we remain confident in the long-term prospects for our brand.”
The move comes as other retailers such as Poundstretcher launch CVAs to move to turnover-based rents.
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