With a store-estate of 90 across the UK, Ann Summers saw its losses deepen from £3 million to £16 million in the year to June 2019. Gold accused landlords of continuing to “bury their heads in the sand”. It also said sales could have a slow recovery due to the Covid-19 pandemic, making it hard for the retailer to pay rents and business rates – although the latter won’t have to be paid until the next financial year due to the one-year holiday currently in place.
Just this week, the retailer warned its stores’ landlords that they must take “a more pragmatic approach” to negotiations over rents.Īnn Summers said that if this did not happen, it would ask to restructure its rent costs through a CVA. However, Ann Summers appears to be trying to avoid a similar fate to its embattled US rival. The lingerie sector is already reeling from the collapse of US giant Victoria’s Secret UK operations, which went into administration on June 5 and placed over 800 jobs at risk.
The first Ann Summers store opened in 1970 in Marble Arch, London. Ann Summers, named after founder ichael Caborn-Waterfield’s female secretary Annice Summers, has had a presence on the UK high streets for the past five decades as a lingerie and sex toy retailer.įrom launching an interactive app to introducing a Party Plan business, Ann Summers’ long-time success appears to be hanging by a thread after chief executive Jacqueline Gold said this week that the retailer might opt for a CVA.Īs landlords refuse to work in partnership with the business and the owning family’s cash injection seemingly not being enough, Ann Summers could well launch a CVA as soon as this week after facing increased losses in its recent financial report.
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