Apricot to switch stores to turnover-based rent

British fashion brand Apricot has reportedly switched the majority of its UK stores to a turnover-based rent model following the approval of its company voluntary arrangement (CVA).

The move will affect 13 of Apricot’s 14 standalone stores, Drapers reports. The closure of the brand’s store or concessions are not part of the CVA.

The company launched the CVA at the end of 2020 following failed rent negotiations with landlords.

CVAs and the switch to turnover-based rents have become increasingly popular over the past few years - and especially so during the pandemic - as a way for retailers to more closely align their rents to the performance of individual stores.

A long list of British fashion retailers launched CVAs last year, including LK Bennett, Ann Summers, Moss Bros, Clarks, New Look, AllSaints, Bair Group and Monsoon Accessorize.

Photo credit: Apricot