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Monsoon creditors approve rescue plan

By Huw Hughes

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Business

Monsoon Accessorize has won approval from its creditors to seek rent cuts in over half of its stores as part of a restructuring strategy.

The Company Voluntary Arrangement (CVA) proposal was initially put forward on 20 June, and proposed rent cuts in 135 of the company’s 258 leased stores. On Wednesday, the company said its CVA proposals had passed “with a majority significantly above the required threshold”.

The British womenswear brand has previously said no stores will be closed as part of the company’s restructuring and it is not expecting to cut any of its 4,440 jobs.

Founder and owner of the business, Peter Simon, will give the company an 18 million pound injection at zero percent interest following the 12 million pound loan he provided earlier this year. In a bid to win support for the restructuring, the company has also offered landlords up to 10 million pounds if it turns back to profit in the future.

Monsoon CEO Paul Allen said in a statement: “We are pleased with today’s result and would like to thank our suppliers and landlords for their continued support. This action will help us to reshape our businesses for the future, and we will now turn our attention to the wider turnaround plan and delivering a sustainable and profitable business moving forward.”

Photo credit: Monsoon website

CVA
Monsoon