Monsoon Accessorize’s CVA has been passed by its creditors, paving the way for hefty rent reductions at around half of its stores.
The retailer did not disclose by what margin its CVA passed but said it was “with a majority significantly above the required threshold”.
Of the retailer’s 258 stores, 135 will now be subject to rent reductions between 25% and 65% for up to three years.
In exchange, the business has offered creditors participation in a £10m annual profit-sharing scheme, if its profits can recover. Creditors had previously called for an equity share in the business, as was awarded by Arcadia owner Sir Philip Green to get its CVA passed, but Monsoon rejected those proposals.
Please sign in now if you have a subscription or are already registered with us.
Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.
Register today for a taste of our high-quality intelligence and enjoy:
Discover Retail Week register now
Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.