// Aspinal of London unveils CVA proposal as a result of Covid-19 pandemic
// The details are not yet known, but the retailer has 10 shops and 300 staff
Aspinal of London has launched a CVA proposal, becoming the latest British retailer to fall victim to the effects of the Covid-19 pandemic.
Exact details of the proposal are not yet clear, although CVAs often entail store closures, rent negotiations and/or job cuts.
Aspinal of London trades from 10 stores across the UK, plus an online store, and employs more than 300 workers.
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The luxury leather goods brand also trades from concessions within Harrods and Selfridges.
Aspinal of London has put forward Will Wright from KPMG as the proposed nominee for the CVA.
For the CVA to go ahead, the proposal needs approval from at least 75 per cent of Aspinal of London’s creditors.
“Covid-19 has presented a number of challenges for those operating in retail and the luxury goods sector, not least the impact of reduced footfall across high street stores,” Wright said.
“If approved, the CVA proposal provides Aspinal with a platform from which it can refocus its business on its core online and premium concessions channels, providing a solid and sustainable grounding for the future.”
Earlier this year, reports emerged that Aspinal of London had drafted in KPMG advisers to review funding options, including a potential sale of the business.
Despite the sale talks, Aspinal of London had recorded strong 12 per cent sales growth over the last Christmas trading period.
However, for its the financial year ending March 2019, its losses doubled to £4.4 million and operation losses deepened to £4 million on the back of an 11 per cent year-on-year rise in turnover to £35 million.
Set up in 2001 by Iain Burton, Aspinal of London originally created handcrafted stationery for the Natural History Museum, before going on to sell high-quality leather goods such as handbags, wallets and other related accessories.