- Huw Hughes |
Monsoon Accessorize is calling on landlords to cut rents on 135 of the company’s 258 leased stores as part of a Company Voluntary Arrangement (CVA) proposal.
In a bid to win support for the restructuring, the company has offered landlords up to 10 million pounds if it turns back to profit in the future. Founder and owner of the business, Peter Simon, has given the company an emergency 12 million pound loan and has offered 18 million more at zero percent interest if the CVA is approved. Simon, who is the landlord of the company’s London head office, has also agreed to cut its rent by 50 percent.
The British womenswear brand 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.
The company said its board have concluded that its rent and occupancy costs are unaffordable.
Commenting on the proposal in a statement, chief executive of Monsoon Accessorize, Peter Allen, said: "Although the group has no external debt, the current rate of sales decline and recent working capital pressures have had a material impact on the group liquidity position.”
He added: "Trading for the group has been difficult for some time, as it has been for much of the retail industry. This is due to a combination of factors, including rising costs, increased competition and subdued consumer spending.”
Photo credit: Monsoon, Facebook