Monsoon delays CVA

Monsoon Accessorize is understood to have delayed its company voluntary agreement (CVA) after landlords failed to support Arcadia’s restructuring plans earlier this week.

A number of landlords are said to have rejected Arcadia’s proposals, which involved rent cuts of up to 70% on 194 shops as they deemed it “too extreme” and said could have a knock-on effect for other retailers.

Monsoon owner Peter Simon will continue to negotiate with landlords and the proposal is expected to be postponed until next week.

In May, Simon pledged to inject £34m into the company to avoid its collapse and was reportedly seeking rent reductions. This led some of its landlords, namely British‎ Land, Hammerson, M&G Investments and Roubaix Group, to write to the company asking for an equity stake in exchange for their support of a CVA and to negotiate improved terms.