British fashion brand Apricot is reportedly exiting its company voluntary arrangement (CVA) 16 months ahead of schedule.
In January last year, the company switched 13 of its 14 UK stores to a turnover-based rent model following creditor approval of its CVA. There were no planned store closures.
The CVA was due to end on December 31 2023, but creditors voted to exit the process early on August 23, Drapers reports.
Apricot director and owner Philip Chaimo told the news publication that the company managed to renegotiate terms on most of its stores and has seen an improvement in its trade.
Based on that, Apricot has decided to exit the CVA process early in order to free the business from the restructuring process and for creditors’ dividends to be increased.
CVAs and the switch to turnover-based rents have become increasingly popular in the past few years - especially so during the pandemic - as a way for companies to more closely align their rents to the performance of individual stores.
In the past years, LK Bennett, Ann Summers, Moss Bros, Clarks, New Look, AllSaints, Bair Group, and Monsoon Accessorize all launched CVAs.