Jewellery brand Thomas Sabo has proposed CVA plans which will see five UK stores close.
According to reports the CVA will not affect its wholesale business which is run by Thomas Sabo Germany. The business also plans to move any staff that are affected by the CVA to other areas of the business wherever possible.
Tony Björk, managing director of the UK and Scandinavia, told media: “Due to the tough conditions on the UK high street at present, including high business rates, the uncertainty of Brexit, and unsustainable lease agreements, which are not reflective of current consumer spending habits, we have had to make some difficult decisions over the last few years in order to support a sustainable, long-term business.
“This includes assessing the unprecedented growth of our online business, which exists alongside a declining physical shopper, which has led us to, as a company, reflect on our store portfolio to ensure that we are both serving the needs of our customers in 2019 and setting a strong foundation for the continued development of the Thomas Sabo brand in UK.”
He added: “Therefore we have this week launched a company voluntary arrangement. The majority of our store portfolio is unaffected, but, if approved, the CVA will likely lead to the closure of five stores.”