Clothing retailer AllSaints seeks rent deal to avoid bankruptcy
Fashion retailer AllSaints is offering to restructure its coronavirus-hit business by forcing landlords to cut rent bills.
The company, which has Republic outlets in Kildare Village and the Powerscourt Center in Dublin, wants its creditors to agree to a deal in which rents are linked to store sales, known as the Voluntary Agreement of company (CVA).
“While AllSaints now begins to reopen its stores globally, it is doing so in an ongoing pandemic environment, with extensive social distancing measures in place and significant uncertainty about customers’ appetites for travel and shopping. their in-store purchases,” he said.
“A compromise with the group’s creditors, via the CVAs, is therefore now necessary to ensure the viability of AllSaints’ business,” he said.
The proposal, if approved by creditors, will see most of its stores switch to revenue-to-rent, which it says “effectively aligns landlords with the group’s takeover and protects the group from further risk. of store closures.
Creditors will vote on the proposal at meetings on July 3 and 6.
“We have taken this step 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 managing director Peter Wood.