Lingerie retailer Ann Summer has launched a restructuring plan to cut rents at around 25 of its stores.
The high street chain, which runs 91 stores, said it has already agreed revised rental terms on its other stores following discussions with landlords in recent months.
However, it said it will now launch a company voluntary arrangement (CVA) deal to move its remaining stores on turnover-based rents.
The chain said it will also secure £10 million of new funding to drive its turnaround plan, if the CVA plan is approved by creditors.
Jacqueline Gold, chief executive of Ann Summers, said: “Ann Summers has a bright future but if the business is to fulfil its potential and prosper in the post-Covid trading environment, we need to align our property costs so they reflect the challenges facing today’s high street.
“I’m grateful to the majority of our landlords who have worked constructively with us to agree sensible terms on the vast majority of our stores, and these landlords will not be affected by the CVA.
“We continue to invest in our marketing, our product and our brand, and are seeking to protect as many stores and jobs as we can through this process.
“We have successful and growing online and party plan businesses, and once our store rents are aligned to market levels as a result of this process, we can approach the future with confidence.”