Lingerie retailer Ann Summer has launched a restructuring plan to cut rents at approximately 25 of its stores.
The high street chain, which operates 91 stores, said it has already negotiated revised lease terms for its other stores following talks with landlords in recent months.
However, it said it will now launch a corporate voluntary agreement (CVA) agreement to relocate its remaining stores on a revenue-based rental basis.
The chain said it will also bring in £ 10 million in new funding to boost its turnaround plan, if the CVA plan is approved by creditors.
Jacqueline Gold, CEO of Ann Summers, said, “Ann Summers has a bright future, but if the company is to unlock its potential and thrive in the post-Covid trading environment, we need to align our real estate costs to reflect the challenges facing us. we are confronted. today’s main street.
“I am grateful to the majority of our landlords who have worked constructively with us to agree sensible terms for the vast majority of our stores, and these landlords will not be affected by the CVA.
“We will continue to invest in our marketing, our product and our brand, trying to protect as many stores and jobs as possible through this process.
“We have successful and growing online and party planning businesses, and once our retail rental is aligned with the market level as a result of this process, we can face the future with confidence.”