- Huw Hughes
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Monsoon Accessorize has announced its trading has been “badly affected”
by Covid-19 and as a result is mulling a potential sale of the business.
The company said it had been trading well up until the impact of the
coronavirus pandemic took its toll on the industry, indicating that the
Company Voluntary Arrangement (CVA) it launched last year after a long
period of poor results was starting to show positive results.
The retailer currently employs around 3,500 people.
A spokesperson said: “Monsoon and Accessorize were trading well until
the start of March, ahead of last year and ahead of the financial plan set
out at the time of last year’s CVA. In common with all other fashion
retailers, trading since then has been badly affected by the outbreak of
Covid-19, with the company facing significant pressure on revenues after
shutting all of its stores.”
Monsoon Accessorize feels Covid-19 impact
The spokesperson continued: “As a result the board is looking at a range
of options to secure the business’s long-term future in these exceptionally
difficult times. These options include a potential sale of some or all of
the business. No decisions have been made about the timing or nature of any
steps the business may take.”
The company has reportedly called in restructuring experts from FRP
Advisory to look over potential options for the business.
In July 2019, Monsoon Accessorize won approval from its creditors to
seek rent cuts in over half of its stores as part of a restructuring
plan.
As part of the strategy, founder and owner of the business Peter Simon
offered the company an 18 million pound injection at zero percent interest
on top of a 12 million pound loan he provided earlier the same year. The
company also offered landlords up to 10 million pounds if it turned back to
profit in the future.
Photo credit: Monsoon
