Ann Summers exits CVA and reduces losses
Lingerie retailer Ann Summers has exited its Company Voluntary Arrangement (CVA) and reported reduced losses as a result of its turnaround strategy.
The business has reported a reduced EBITDA loss of £7.2 million in the year to June 2020, compared to a £11.3 million loss in the same period the year before. It also expects a “meaningful return to profit” based on a sales increase of 9.3% to £113.8 million in the year to 2021.
The return of the business to profitability and funding position will enable Ann Summers to exit the company voluntary arrangement (CVA) it entered into with landlords in December 2020, it said. Only 25 of its 91 stores will be affected, as revised terms have been agreed with landlords on the rest of the estate. No store closures are planned.
Jacqueline Gold, CEO of Ann Summers said: “Ann Summers has emerged after some very challenging years with a return to profitability in 2021. Everyone in the business has worked incredibly hard to deliver the turnaround and, while there remains much to do, I’m very grateful to every member of our team who has contributed to it.
“I’d also like to thank those landlords and suppliers who supported us through our CVA last year, which played an important part in helping us get back on track.
“While the external environment remains uncertain, we are well placed to continue our recovery. We are now a true multichannel business, with powerful online capabilities combined with a rightsized store portfolio – the majority of stores are now on variable turnover rents – and our unique army of direct sales ambassadors. We are determined to take advantage of the opportunities in today’s much-changed retail market, and together we are looking to the future with confidence.”
