// Jewellery retailer Thomas Sabo mulls five store closures
// The German business is launching a CVA for its UK operations
// CVA also includes plans to reduce rent across its 22-strong store estate
German jewellery retailer Thomas Sabo has launched a CVA for its UK operations, which could result in the closure of five stores.
The watch and jewellery brand said it was hoping to trim down its 22-strong UK store estate by seeking rent reductions or store closures.
The CVA proposal still needs to be approved by creditors, and if given the green light, five of Thomas Sabo’s UK stores could shut down.
However, Thomas Sabo stressed that it was business as usual for the time being, and that its wholesale division would be unaffected as it is managed by the parent company in Germany.
Thomas Sabo’s UK managing director Tony Björk told Professional Jeweller that the CVA came about due to tough high street conditions, high business rates, Brexit uncertainty, and “unsustainable lease agreements” that are “not reflective of current consumer spending habits”.
“We have had to make some difficult decisions over the last few years in order to support a sustainable, long-term business,” he said.
“This includes assessing the unprecedented growth of our online business which exists alongside a declining physical shopper, which has led us to, as a company, reflect on our store portfolio to ensure that we are both serving the needs of our customers in 2019 and setting a strong foundation for the continued development of the Thomas Sabo brand in UK.
“Therefore we have this week launched a CVA. The majority of our store portfolio is unaffected but, if approved, the CVA will likely lead to the closure of five stores.”
In addition to its 22 stores, Thomas Sabo has three concessions with John Lewis.