UK Fashion Brand Adapts Lease Agreements Amid Pandemic Struggles
- Apricot switches to turnover rent after CVA
- Impact on 13 of its 14 UK stores
- Decision made on January 15th
- Rent reductions due to Covid-19 crisis
- No planned store closures
- Portfolio includes 14 stores in the UK, Ireland, and US; concessions across Europe
Women’s fashion retailer Apricot has switched the lease agreements for most of its UK stores to turnover-based rents following a Company Voluntary Agreement (CVA) amidst the ongoing Covid-19 crisis. The decision, which affects 13 out of its 14 UK locations, was approved on January 15th. This move came after landlords reportedly refused to renegotiate rent terms at the start of the pandemic. Despite the need for rent reductions due to the ongoing health crisis, no store closures are planned. Apricot operates a total of 14 stores across the UK, Ireland, and US, as well as approximately 350 concessions in high street shops like Debenhams, Outfit, New Look, and others in Europe.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Apricot’s decision to change lease agreements for its UK stores to turnover-based rents due to the Covid-19 crisis and the company voluntary agreement (CVA). It also mentions the number of stores affected and the company’s other operations. However, it lacks some details on the specific terms of the new lease agreements and the exact reasons for landlords not accepting rent reductions.
Noise Level: 2
Noise Justification: The article provides relevant information about Apricot’s decision to change lease agreements for its UK stores to turnover-based rents due to the Covid-19 crisis and the company voluntary agreement (CVA). It also mentions the number of stores affected and the company’s other operations. However, it lacks in-depth analysis or exploration of long-term trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: Landlords of Apricot’s UK stores
Financial Rating Justification: The article discusses a company voluntary agreement (CVA) that led to changes in lease agreements for Apricot’s UK stores, impacting landlords and their rental income.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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