Majority Support for AllSaints’ Plan to Shift to Turnover Rent Model
- Allsaints creditors approve CVA
- 93% approval in UK, 90% in US for turnover-based rent system
- CVAs to help ensure long-term viability of AllSaints
- Most stores to move to turnover-rent, some closures
- CEO Peter Wood thanks supporters
Allsaints has received approval from its creditors to implement a Company Voluntary Arrangement (CVA) that will transition most of its stores to a turnover-based rent system. The proposals, which were voted on separately by UK and US creditors, received over 90% approval in both regions. Under the CVA, most of Allsaints’ 41 UK stores and 42 North American locations will adopt the new rental model. A few stores with unfeasible business will close. CEO Peter Wood expressed gratitude to teams, suppliers, and partners for their support during the process. He added that the decision was not made lightly but is crucial for AllSaints’ long-term sustainability. Despite five years of year-on-year revenue growth, the pandemic’s impact on retail estate has caused substantial short-term sales decline.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Allsaints receiving approval for its CVA plan, the percentage of creditor approval in both UK and US, the number of stores affected by the turnover-based rent system, and the CEO’s statement. It also mentions the company’s previous revenue growth and the impact of the pandemic on sales.
Noise Level: 3
Noise Justification: The article provides relevant information about Allsaints’ CVA approval and its plans to move to a turnover-based rent system. However, it lacks in-depth analysis or exploration of the long-term implications and does not offer significant actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: UK and North American retail real estate market
Financial Rating Justification: The article discusses Allsaints’ CVA plan, which impacts its stores’ rent system and the closure of some stores in the UK and North America. This affects the company’s financial situation and could have implications for the retail real estate market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses a company’s decision to implement a CVA (Creditors Voluntary Arrangement) due to the impact of the pandemic on its sales and retail operations, but it does not mention an extreme event in the last 48 hours.
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