Monsoon management to shut down joint Monsoon - Accessorize stores

Media reported over the weekend that British retailer Monsoon Accesorize will close down 141 stores as leases approach expiration – in the coming five years - in a move to decouple the two brands.

According to the ‘Guardian’, the retailer has decided to shut down those joint-brand stores, with 141 stores set to be affected. Trying to calm the unrested staff, the company´s management advanced that it would open separate Monsoon and Accessorize stores in the areas currently with joint outlets, job losses were still possible.

To date, Monsoon Accessorize employs 5,500 people and has over 300 stores.

Monsoon's CEO to overhaul ailing retailer by cutting costs of low-performing stores

The restructuring is part of a strategic overhaul by recently-appointed chief executive Paul Allen. Allen, who took the helm at the fashion retailer back in January, has launched a restructuring plan aimed at reducing costs by shutting its larger stores and introducing more Accessorize kiosks in railway stations and airports, and concessions in department stores.

Monsoon Acccesorize is owned by the tycoon Peter Simon’s company Drillgreat Limited, which experienced a nine percent drop in sales last year, to close fiscal year 2015 – ended on August 31 - with 465 million pounds, including a five percent drop in like-for-like sales in the UK.

Pre-tax loss wasn´t good either, as it came in at 155 million pounds.

Commentingn the latest results, the CEO of the company said in the accounts that Monsoon Accessorize had a disappointing year, highlighting Monsoon’s performance as poor thanks to unseasonable weather and stiff discounting competition by high street rivals

On another note, Monsoon and Accessorize founder Peter Simon has promised to not withdraw any further multi-million-pound dividends during the restructuring, reports the ‘Telegraph’.

It's worth recalling that last year the fashion mogul paid himself a 26.9 million pounds dividend while the retailer struggled to on the high street. A year before, Simon received a 21 million pounds payout.

Image:Monsoon Web