7 July 2020
All Saints has had its CVA proposals approved by the 75 per cent of creditors it required to ensure the long-term viability of its business. The proposals were backed by 93%.
CEO, Peter Wood said: ”I would like to express my sincere gratitude to our teams, suppliers and other partners around the world for their overwhelming support during this process. We are also delighted that the majority of our landlords across the UK, EU, US and Canada voted in favour of our proposals, and would like to thank them for their patience and understanding. The decision to launch the CVAs was not taken lightly, and this successful outcome will be instrumental in helping us to ensure the long-term viability of AllSaints.''
18 June 2020
Contemporary fashion retailer, All Saints launch a Company Voluntary Arrangement (CVA) proposal, demanding rent reductions from its landlords in order to fight for its survival amid the coronavirus pandemic. This makes it the next retail casualty of COVID-19.
The arrangement, handled by Alvarez & Marsal, is for its UK and US operations. If the proposal is approved by creditors in July, 41 stores in the UK & 42 stores in North America would be affected.
All Saints has been owned by Lion Capital since 2011. Since the outbreak of coronavirus, Lion have been examining options to support the firm, with the most viable choice being a CVA for its UK and US subsidiaries, hence the decision. A source says Lion remain committed to All Saints.
The fashion retailer trades from over 250 stores across 26 countries, with a strong presence in Asia and employing over 3,000 people in total.
Close sources said the proposed CVA only involves closing a handful of its stores, with the focus of the restructuring plan being mainly to extract substantial financial concessions from landlords. It is unclear if job cuts will be involved.
In 2018, the group recorded sales of £331m, with half of the figures being from its non-UK business.
CEO, Peter Wood explains how the decision was taken to secure the long-time viability of the retailer, among the unprecedented impact that Covid-19 has had.
''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.''
Refer to the All Saints (US) press release.