Monsoon has said it is looking to “accelerate” the process of its store closures as it mulls a potential CVA in order to restructure its estate.
A spokesman for the group, which operates 268 stores under its Monsoon and Accessorise fascias, said due to the “tough” trading environment a CVA was one of the options being explored in a bid to reduce overall costs.
He 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.”
A source close to the business confirmed Monsoon had brought in advisers from Deloitte and that a possible CVA was one of the options being explored.
The fashion retailer, owned by founder Peter Simon, has struggled to remain relevant to shoppers. In early February, it asked landlords across its estate portfolio for rent reductions.
Monsoon has also run down the leases and closed nearly 40 stores over the last two years, while its German business filed for insolvency in late January.
In its most recent reported results for the financial year up to August 27, 2016, Monsoon reported £12.6m of losses after tax and operating losses of £10.4m.
Monsoon joins several large high street fashion names that have recently started exploring the possibility of a CVA.
Sir Philip Green appointed Deloitte to undertake a review of his Arcadia empire in early January, and recently brought in property firm GCW to explore the possibility of a CVA to shrink his store portfolio.
Outside of fashion, in late March, Paperchase won creditor approval for a CVA, which saw it close five shops and tie the rents of many stores to turnover.