Clothing retailer AllSaints seeks deal on rent to avoid bankruptcy
Retailer proposes compromise with creditors to allow it trade through downturn
Fashion retailer AllSaints is proposing to restructure its coronavirus-hit business by forcing its landlords to cut rent bills.
The company, which has outlets in the Republic in Kildare Village and the Powerscourt Centre in Dublin, wants its creditors to agree deal whereby rents are linked to store sales, known as a company voluntary arrangement (CVA).
“ 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,” it said.
“A compromise with the group’s creditors, via the CVAs, is therefore now required to ensure the viability of AllSaints’ business,” it said.
The proposal if approved by creditors will see most of its stores move to turnover-rent, which it said “effectively aligns landlords with the group’s recovery and protects the group against further risk of retail closure”.
Creditors will vote on the proposal at meetings on July 3rd and July 6th.
“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,”said chief executive Peter Wood.
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