Thomas Sabo has confirmed plans to reduce its store portfolio under a company voluntary agreement.
The fashion jewellery brand has become the latest retail business to look at a CVA to cut costs amid difficult trading conditions.
If approved, Thomas Sabo is likely to close five underperforming stores.
Tony Björk, managing director for the UK and Scandinavia at Thomas Sabo, says: “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.
“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.”
The brand has told Professional Jeweller it plans to do as much as possible to keep all members of staff – including reshuffling them to other areas of the business.
Thomas Sabo also states that on the wholesale side, it’s business as usual.
Björk tells Professional Jeweller: “The CVA mainly involves the retail store portfolio, specifically those locations which have been under performing. The business relationship for wholesale customers is direct with Thomas Sabo Gmbh & Co KG in Germany and so is unaffected.”
Currently Thomas Sabo operates 22 standalone stores and three concessions in the UK.