All Saints creditors approve restructuring plan
High street retailer All Saints will switch to turnover-based rents after the company’s creditors gave the green light to its restructuring plan.
All Saints launched a company voluntary arrangement (CVA) in June after the coronavirus pandemic forced it to close stores around the world causing sales to dive.
The agreement will allow All Saints to move to turnover rents at most of its 41 stores in the UK and its 42 US shops. However in June the company said that some stores “where business is not viable” are expected to close.
Turnover rents align landlords with the group’s recovery and are designed to prevent further physical store closures.
All Saints secured 93 per cent approval for its UK business CVA and 90 per cent for its US arm.
All Saints chief executive Peter Wood: “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 All Saints.”