As the recession deepens and the end of the furlough scheme looms, Ann Summers becomes the latest retailer to threaten landlords with CVA unless shop rents are renegotiated

Some landlords are “burying their heads in the sand”, says Ann Summers boss Jaqueline Gold.

Ann Summers is a hugely successful lingerie and sex toy chain, which has brought the industry from the backstreets into mainstream retailing in the high street. They famously selling millions of pounds worth of products through ‘party plan’ selling in customers houses.

Gold warned that unless landlords come to the table, they would ask to restructure its rent costs through a Company Voluntary Arrangement (CVA), which would wipe out much of its debt and liabilities such as lease agreements.

A CVA is a legally enforceable rescue deal that enables limited companies to close unprofitable parts of the business, such as low performing stores, reduce their rent on others without going into bankruptcy or liquidation which would wind up the business.

Jacqueline Gold said landlords needed to recognise things had changed.

"Ultimately no retailer can afford to run stores unprofitably, and with business rates set to return next spring, the challenge of property costs is going to become even more pressing than ever," she said.

Writing in Retail Week, Ms Gold said the threat of a CVA was "no idle threat".  

Source: BBC

In my experience, commercial landlords can be ruthless especially to smaller tenants with no clout. I have seen many small business owners made bankrupt by landlords over unpaid rent on a binding lease agreement.

5 tips to avoid bankruptcy
Avoid signing long leases especially in your own name.
Avoid signing personal guarantees.
Limit your personal liabilities and debts.
Incorporate your business
Take out liability insurance

Individuals suffer most from debts and can lose everything including their home.

Jaqueline Gold or Richard Branson will not lose their home of one of their companies fails because they are not sole traders or in a partnership. 

The above information should not be treated as personal financial advice, and you should always take advice from your own advisers, accountants and lawyers who know your personal circumstances.

Other articles available atMoney Tips Podcast - www.moneytipsdaily.com

 
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Is this the end of office work as we know it?
Home workers one step closer to outsourced
What will happen to all the city office blocks?
Companies still have long leases on big offices
Why live in expensive town centres anymore?
Buy-to-let landlords ignore “NO DSS” tenant ban
Restaurants extend ‘eat out to help out’ scheme 
Thousands trapped in unsellable leasehold flats
2m homeowners apply for mortgage payment holiday
Government extends ban on landlords evicting tenants 
Unemployment to double 7.5% and economy slump 9.5% 
Self-employed, have you claimed your government grant?
Lenders not passing on rate cuts and mortgage rates going up!
UK property prices jumped by 3% since June following stamp duty cut
Why UK Property prices rising after stamp duty cut, despite the downturn?
New planning rules will open up more opportunities to make money in property
You can create a second income during the lockdown…and come out stronger
Learn how to make money from property without deposits, mortgages or cash

 

Millions of people face a bleak future post-Coronavirus lockdown, as businesses disappear and the job furlough scheme eventually comes to an end. However, life doesn’t have to end because of lockdown! You can join thousands of ordinary people who have increased their income and added streams of new income during this period. 

Are you ready to adapt to the new economic model?

As lockdown restrictions around the world are being eased, the economic model has subtly changed forever. How will you adapt to this new way of working and running a business, what obstacles and opportunities lies ahead? Will you be a participant or spectator in this revolution? 

By Charles Kelly, Wealth Mentor, Property Investor, Author of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

If you’d like further information on wealth mentoring and coaching, how to survive the crisis and even quit the rat race, email me at Charles@CharlesKelly.net or send me a message through Facebook or my Money Tips Daily community. See more articles at www.moneytipsdaily.com

As the recession deepens and the end of the furlough scheme looms, Ann Summers becomes the latest retailer to threaten landlords with CVA unless shop rents are renegotiated
Some landlords are &ldquo;burying their heads in the sand&rdquo;, says Ann Summers boss Jaqueline Gold.
Ann Summers is a hugely successful lingerie and sex toy chain, which has brought the industry from the backstreets into mainstream retailing in the high street. They famously selling millions of pounds worth of products through &lsquo;party plan&rsquo; selling in customers houses.
Gold warned that unless landlords come to the table, they would ask to restructure its rent costs through a Company Voluntary Arrangement (CVA), which would wipe out much of its debt and liabilities such as lease agreements.
A CVA is a legally enforceable rescue deal that enables limited companies to close unprofitable parts of the business, such as low performing stores, reduce their rent on others without going into bankruptcy or liquidation which would wind up the business.
Jacqueline Gold said landlords needed to recognise things had changed.
"Ultimately no retailer can afford to run stores unprofitably, and with business rates set to return next spring, the challenge of property costs is going to become even more pressing than ever," she said.
<a href="https://www.retail-week.com/fashion/jacqueline-gold-weve-put-more-family-money-into-ann-summers-but-now-im-facing-a-cva/7035634.article">Writing in Retail Week, Ms Gold said</a>&nbsp;the threat of a CVA was "no idle threat".&nbsp;&nbsp;
Source: BBC
In my experience, commercial landlords can be ruthless especially to smaller tenants with no clout. I have seen many small business owners made bankrupt by landlords over unpaid rent on a binding lease agreement.
5 tips to avoid bankruptcy
<ol>
<li>Avoid signing long leases especially in your own name.</li>
<li>Avoid signing personal guarantees.</li>
<li>Limit your personal liabilities and debts.</li>
<li>Incorporate your business</li>
<li>Take out liability insurance</li>
</ol>
Individuals suffer most from debts and can lose everything including their home.
Jaqueline Gold or Richard Branson will not lose their home of one of their companies fails because they are not sole traders or in a partnership.&nbsp;
The above information should not be treated as personal financial advice, and you should always take advice from your own advisers, accountants and lawyers who know your personal circumstances.
Other articles available at <a href="http://www.moneytipsdaily.com">Money Tips Podcast</a> - <a href="http://www.moneytipsdaily.com">www.moneytipsdaily.com</a>
&nbsp;
<ul>
<li>Tax increases plan to pay for furlough</li>
</ul>
<ul>
<li>Zero interest credit card deals returning</li>
</ul>
<ul>
<li>Will demand for HMO rooms rise or fall?</li>
</ul>
<ul>
<li>EU staff offered chance to go home to work</li>
</ul>
<ul>
<li>Capita to shut a third of offices permanently&nbsp;</li>
</ul>
<ul>
<li>Is this the end of office work as we know it?</li>
</ul>
<ul>
<li>Home workers one step closer to outsourced</li>
</ul>
<ul>
<li>What will happen to all the city office blocks?</li>
</ul>
<ul>
<li>Companies still have long leases on big offices</li>
</ul>
<ul>
<li>Why live in expensive town centres anymore?</li>
</ul>
<ul>
<li>Buy-to-let landlords ignore &ldquo;NO DSS&rdquo; tenant ban</li>
</ul>
<ul>
<li>Restaurants extend &lsquo;eat out to help out&rsquo; scheme&nbsp;</li>
</ul>
<ul>
<li>Thousands trapped in unsellable leasehold flats</li>
</ul>
<ul>
<li>2m homeowners apply for mortgage payment holiday</li>
</ul>
<ul>
<li>Government <a href="http://www.moneytipsdaily.com/u-turn-on-tenant-eviction-ban-as-government-extends-by-four-weeks/">extends ban on landlords evicting tenants</a>&nbsp;</li>
</ul>
<ul>
<li>Unemployment to double 7.5% and economy slump 9.5%&nbsp;</li>
</ul>
<ul>
<li>Self-employed, <a href="http://www.moneytipsdaily.com/self-employed-have-you-claimed-a-grant-through-the-self-employment-income-support-scheme/">have you claimed your government grant</a>?</li>
</ul>
<ul>
<li>Lenders not passing on rate cuts and mortgage rates going up!</li>
</ul>
<ul>
<li>UK property prices jumped by 3% since June following stamp duty cut</li>
</ul>
<ul>
<li>Why UK <a href="http://www.moneytipsdaily.com/uk-property-prices-rise-after-stamp-duty-cut-say-rightmove/">Property prices rising after stamp duty cut</a>, despite the downturn?</li>
</ul>
<ul>
<li>New planning rules will open up more opportunities to <a href="mailto:charles@charleskelly.net">make money in property</a></li>
</ul>
<ul>
<li>You can create a second income during the lockdown&hellip;and come out stronger</li>
</ul>
<ul>
<li>Learn how to <a href="mailto:charles@charleskelly.net">make money from property</a> without deposits, mortgages or cash</li>
</ul>
&nbsp;
Millions of people face a bleak future post-Coronavirus lockdown, as businesses disappear and the job furlough scheme eventually comes to an end. However, life doesn&rsquo;t have to end because of lockdown! You can join thousands of ordinary people who have increased their income and added streams of new income during this period.&nbsp;
Are you ready to adapt to the new economic model?
As lockdown restrictions around the world are being eased, the economic model has subtly changed forever. How will you adapt to this new way of working and running a business, what obstacles and opportunities lies ahead? Will you be a participant or spectator in this revolution?&nbsp;
By Charles Kelly, Wealth Mentor, Property Investor, Author of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.
There are more examples and practical steps to getting rich and being happy in my book, <a href="http://bit.ly/2MoneyBook">Yes, money can buy happiness</a>, I cover the 3 R&rsquo;s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon <a href="http://bit.ly/2MoneyBook">http://bit.ly/2MoneyBook</a>.
If you&rsquo;d like further information on wealth mentoring and coaching, how to survive the crisis and even quit the rat race, email me at <a href="about:blank">Charles@CharlesKelly.net</a> or send me a message through Facebook or my Money Tips Daily community. See more articles at <a href="http://www.moneytipsdaily.com">www.moneytipsdaily.com</a>

Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness.  Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business.  Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation.   For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness.&nbsp; Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business.&nbsp; Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation. &nbsp; For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

Money Tips Podcast

Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. 

Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business. 

Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation.  

For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

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