Ann Summers denies reports that a CVA is imminent

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Ann Summers CVA
// Ann Summers is reportedly on the verge of launching a CVA
// It had hired property advisers CWM last month, and now has reportedly hired KPMG to draw up plans for the CVA
// Ann Summers denies a CVA is in the works but confirmed it was speaking with landlords

Ann Summers has denied reports that it was reportedly on the verge of launching a CVA which would focus on seek rent reductions or the closure of up to 45 stores.

The news comes about a month after the lingerie retailer hired property advisers from CWM to consider options and assist it in negotiating with landlords for lower rents across its estate of 106 stores.

The Guardian reported at the time that if rent reductions were not agreed, then the Ann Summers may be forced to consider pursuing a CVA.

According to Drapers, the retailer has now reportedly hired KPMG to draw up a plan for a CVA.

Sources speaking to the publication also said the launch of the CVA was “imminent”.

However, a spokeswoman for Ann Summers refuted this – but confirmed the retailer was negotiating with landlords regarding rent reductions.

“As a leading retailer operating in the current retail climate we are constantly striving to secure the most cost effective and responsible ways of working,” the spokeswoman said.

“This includes working with a property agent on our existing portfolio as well as new sites that we hope to secure in the near future.

”Ann Summers has absolutely no plans to do a CVA, but given the market conditions and that many stores are over-rented, it makes sense to be having a constructive dialogue with landlords at the present time.

“To say otherwise is pure speculation and unnecessarily upsetting for our people.’’

Ann Summers swung to a full-year operating loss of £3.16 million in the financial year ending June 30, 2018, according to accounts filed at Companies House in January.

This compared to an operating profit of £2.97 million in the prior year.

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