// AllSaints mulls CVA plan amid high street crisis
// AllSaints will next week seek steep rent cuts from landlords when it unveils a restructuring plan
// AllSaints trades from more than 250 stores and employs more than 3000 people
AllSaints is on the verge of becoming the next retail casualty as a result of the coronavirus pandemic, as the fashion retailer reportedly plans to launch a CVA next week.
According to Sky News, AllSaints is set to demand steep rent cuts from its landlords across the UK and US via a CVA that could be launched as early as Tuesday.
AllSaints parent company Lion Capital has reportedly been examining options to support the fashion retailer since the start of the pandemic, and has lined up Alvarez & Marsal to handle a restructuring plan via a CVA.
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It is not clear if store closures or job cuts will be part of the CVA yet.
Founded in 1994 and headquartered in London, AllSaints trades from more than 250 stores globally and employs more than 3000 people across the company.
In the UK, it operates 40 standalone stores plus dozens of concessions with department stores.
In 2018, AllSaints recorded total sales of £331 million, and Sky News suggested it booked record sales in 2019 after it invested in and expanded its digital capabilities.
AllSaints is not alone in pursuing a potential CVA, with reports indicating that Poundstretcher and Intu are mulling that option as well.
Meanwhile, Bensons for Beds is reportedly about to enter a pre-pack administration deal while stablemate Harveys faces being liquidated if a new buyer is not found.
The coronavirus pandemic has led to bloodbath in UK retail in terms of job cuts, store closures and business restructures either through CVAs or administrations.
The likes of Laura Ashley, Debenhams, Monsoon & Accerorize, Oasis & Warehouse, Cath Kidston, BrightHouse, Quiz, Antler, Animal, Lombok and Johnsons Shoes have all pursued insolvency processes since the start of the pandemic in March.
The UK arms of international retailers Victoria’s Secret and Aldo have also been fallen into administration.