- Huw Hughes |
British luxury retailer Aspinal of London has received the green light from creditors to go ahead with its proposed company voluntary arrangement (CVA), meaning all 10 of its stores will be permanently closed.
The CVA was “comfortably” approved by over 75 percent of its creditors last week, a source close to the retailer told Drapers.
Founded in 2004, the luxury handbag and accessories retailer employs over 300 staff and has 10 stores across the UK as well, an ecommerce business, and also operates concessions in Harrods and Selfridges.
In its most recent quarterly figures published in January, Aspinal of London reported widening losses despite increasing revenue.
The company called in advisory firm KPMG to launch its CVA proposal back in September after being “profoundly impacted” by the Covid-19 pandemic and months-long store closures. None of its 10 stores had reopened after the UK lockdown was lifted on 15 June.
Focus on core online and premium concessions channels
Will Wright, proposed nominee of the CVA and partner at KPMG, said at the time: “Covid-19 has presented a number of challenges for those operating in retail and the luxury goods sector, not least the impact of reduced footfall across high street stores.
“If approved, the CVA proposal provides Aspinal with a platform from which it can refocus its business on its core online and premium concessions channels, providing a solid and sustainable grounding for the future.”
A long list of British fashion companies have launched CVAs in recent months as they struggle to cope with the impact of Covid-19, including AllSaints, Bair Group, Hotter Shoes and Monsoon Accessorize.
More recently in September, high street retailer New Look got the green light to go ahead with its CVA which looks to reset the majority of its UK stores to a turnover rent model.
Photo credit: Aspinal of London