The turnover-based rent model is a way of allowing tenants to pay rent based on how sales perform. It allows tenants to reduce rents when trading is hard, and then give landlords more when times are better.
Subject to the successful approval of the CVA, additional funding of up to £10 million will be made available to Ann Summers to continue the turnaround of the business and help finance the board’s growth plans.
Gold said: “Ann Summers has a bright future but if the business is to fulfil its potential and prosper in the post-Covid trading environment, we need to align our property costs so they reflect the challenges facing today’s high street.”
Ann Summers is being advised by FRP Advisory on the plan and requires the support of 75% of creditors in order to proceed. A creditors’ meeting to vote on the proposal will be held on December 23.
