- Huw Hughes |
Monsoon Accessorize has announced its trading has been “badly affected” by Covid-19 and as a result is mulling a potential sale of the business.
The company said it had been trading well up until the impact of the coronavirus pandemic took its toll on the industry, indicating that the Company Voluntary Arrangement (CVA) it launched last year after a period of poor trading was starting to show positive results.
The retailer currently employs around 3,500 people.
A spokesperson said: “Monsoon and Accessorize were trading well until the start of March, ahead of last year and ahead of the financial plan set out at the time of last year’s CVA. In common with all other fashion retailers, trading since then has been badly affected by the outbreak of Covid-19, with the company facing significant pressure on revenues after shutting all of its stores.”
Monsoon Accessorize feels Covid-19 impact
The spokesperson continued: “As a result the board is looking at a range of options to secure the business’s long-term future in these exceptionally difficult times. These options include a potential sale of some or all of the business. No decisions have been made about the timing or nature of any steps the business may take.”
The company has reportedly called in restructuring experts from FRP Advisory to look over potential options for the business.
In July 2019, Monsoon Accessorize won approval from its creditors to seek rent cuts in over half of its stores as part of a restructuring plan.
As part of the strategy, founder and owner of the business Peter Simon provided the company with a 30 million pound. The company also offered landlords up to 10 million pounds if it turned back to profit in the future.
Photo credit: Monsoon, Facebook