Aspinal of London prepares to close stores due to low city centre footfall
Luxury brand Aspinal of London is the latest retailer to launch a restructuring process as it seeks to close stores due to a sharp drop in city centre footfall during the coronavirus pandemic.
The firm, which has 10 stores as well as concessions in Harrods and Selfridges, has unveiled a company voluntary arrangement (CVA) proposal that would see it close all of its standalone sites.
Aspinal of London has been “impacted profoundly by the impact of the Covid-19 pandemic on consumer confidence and footfall”, it said.
The company, which employs around 300 workers, will refocus on its digital business and concessions amid a spike in online shopping demand during the pandemic.
Most of the firm’s standalone stores are in central London, which has so far been the slowest area to see footfall recovery due to the absence of tourists and continued preference to work from home.
Will Wright, proposed nominee of the CVA and partner at KPMG, commented: “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.”
Retailers have turned towards CVAs during the pandemic in a bid to reduce rents or exit loss-making stores.
New Look landlords this week approved a plan to switch the high street chain to turnover-based rents, which ties payments to the store’s sales.
It was reported previously that suit retailer Moss Bros had hired KPMG, in a move that could pave the way for a CVA and store closures.
Meanwhile, lingerie brand Ann Summers warned landlords this month that it would launch a CVA process if it was not able to renegotiate rent payments.