Fashion retailer AllSaints has outlined CVA proposals for its stores in the UK and US.
The retailer plans to switch to turnover rents for the majority of its 41 stores in the UK and 42 stores in the US.
It expects that a “small number” of stores will close where business is not feasible, but did not disclose a specific figure.
Creditors will vote on the proposal at meetings on 6 July in the UK and 3 July in the US.
Alvarez & Marsal has been appointed to lead the process.
AllSaints said the closure of its retail estate around the world as a result of the coronavirus pandemic has had a “substantial and sudden” impact on short-term sales.
It added that it took “immediate” measures to reduce costs, including maximising online sales, halting all discretionary spend and turning to government support.
“While AllSaints is now beginning to reopen its stores around the world, it is doing so in the environment of an ongoing pandemic, with extensive social distancing measures in place, and significant uncertainty around customer appetite to travel and shop in-store,” stated the retailer.
Peter Wood, chief executive of AllSaints, said: “We have taken this step in order to ensure the long-term viability of AllSaints in the face of the unprecedented impact that Covid-19 has had on our business and the wider fashion retail industry.
“The CVAs will allow us to sustain a strong physical retail presence, which in turn will allow us to protect jobs and continue to provide great product and service to our customers.
“Prior to the outbreak of the pandemic we were seeing increased demand for AllSaints in every part of the world in which we operate, and during lockdown we have continued to reach new customers via our online channels.”
In total, AllSaints has 255 directly operated stores, franchises, concessions and outlets across 26 countries, with around 3,000 employees globally.
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