Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Fashion retailer Monsoon Accessorize is reportedly on the brink of appointing administrators.
According to Sky News, Monsoon’s owner Peter Simon is set to file a notice of intention to appoint administrators shortly. Reports also suggest Simon is lining up FRP Advisory to handle the process.
As a result the move would likely put around 3,500 jobs at risk located across its 220 stores. It is thought that Simon has been seeking a sale of the business and despite the notice of intention remains in talks with a small number of prospective buyers.
Sky also reports that, if a deal cannot be agreed, Simon will look to buy back what is left of the business following an administration.
The news comes less than a year after the business approved CVA plans which saw over half of its stores receive rent reductions.
The reductions saw cuts to rents of between 25%- 65% across 135 out of its stores after the retailer said its costs at the time were “unaffordable, given the fundamental changes that have taken place in the retail sector”.
Landlords were also incentivised to vote for the CVA after being offered up to £10m as part of a profit-sharing scheme if the CVA leads to the company trading profitably and above forecast.
Monsoon has been contacted for comment.
