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Tuesday 17 September 2019

Advisers brought in to speed up Monsoon and Accessorize closures

The company wants to ‘accelerate’ store closures amid challenges to the high street.

Branches of the two brands could close as part of the CVA (Yui Mok/PA)
Branches of the two brands could close as part of the CVA (Yui Mok/PA)

By Alys Key, Press Association City Reporter

Monsoon and Accessorize could be the latest stores to disappear from high streets up and down the country, after the owner of both brands called in advisers to speed up its closure process.

The parent company of the chains has brought in Deloitte to prepare plans for a possible Company Voluntary Arrangement (CVA), the same process through which retailers New Look and Mothercare closed stores last year.

Any proposals are also likely to include rent reductions on Monsoon and Accessorize’s joint estate of almost 270 sites.

We have made no secret of the fact that we have steadily reduced our store portfolio in recent years and shall continue to do so as leases expire Monsoon Accessorize

A spokesman for Monsoon Accessorize said: “The UK retail trading environment is tough and we are continuing to look at options to reduce our overall costs as we restructure the business in the UK and internationally.

“We have made no secret of the fact that we have steadily reduced our store portfolio in recent years and shall continue to do so as leases expire.

“We are looking at options to accelerate these store closures.”

Earlier this year it emerged that Monsoon Accessorize was seeking rent cuts on some of its sites, but a spokesman denied that a CVA was on the cards at the time.

The CVA would form part of long-running efforts to slim down its store estate as sales move increasingly online.

It has closed almost 40 stores in the last two years, as well as relocating and downsizing others.

The most recent available accounts for Drillgreat, the holding company for Monsoon and Accessorize, show that the company made a loss before tax of £10.5 million in the year to August 26 2017.

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