JD Sports executive chair Peter Cowgill has said the rate of retail pre-pack administrations and company voluntary arrangements (CVAS) will pick up in the wake of the pandemic.
The sports fashion retailer, which posted an uplift in full-year profits and strong sales in its full-year results, launched a controversial pre-pack administration for subsidiary Go Outdoors last month in a bid to secure more competitive rental prices across its 67-strong store estate.
Boss Cowgill told Retail Week that arrangements of this nature would become more commonplace as retailers grappled with footfall declines and unyielding landlords in the wake of the coronavirus pandemic.
“All JD stores were successful to varying degrees before the pandemic, however I think there was already evidence of a movement towards online even before coronavirus. Our store estate can be retained but has to be repriced and that has to be recognised by bondholders and the financiers of shopping centres,” he said.
Please sign in now if you have a subscription or are already registered with us.
Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.
Register today for a taste of our high-quality intelligence and enjoy:
Discover Retail Week register now
Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.