Monsoon’s proposed company voluntary arrangement is already facing opposition from large landlords ahead of its reported launch tomorrow, Retail Week understands.
Several of the UK’s largest landlords have taken issue with Monsoon Accessorize’s handling of discussions around its long-mooted CVA, which it is expected to unveil tomorrow.
One source close to a large landlord accused Monsoon of a “disappointing” lack of engagement with creditors over the last few weeks, as the embattled fashion retailer has sought to slash rents on around two-thirds of its 270-strong store estate.
Another source close to a seperate UK property firm cast doubt on whether Monsoon Accessorize’s financial position was bad enough for it to need to resort to a CVA and would be studying the proposal to ensure the insolvency tool was being used “in the right way”.
Monsoon Accessorize Limited’s most recent set of financial accounts, for the 52 weeks to August 26 2017, showed the company suffered comprehensive losses of over £3.1m with a turnover of £310.9m.
However, the business is currently listed as having its most recent set of accounts overdue on Companies House, and any CVA proposal would be published with more up-to-date financial results.
It was widely reported on last week that as many as six landlords had called on Monsoon Accessorise owner Peter Simon to inject £30m worth of equity funding in exchange for their approval on any CVA proposal.
Monsoon has maintained throughout the process that it is not looking to close any stores as part of its CVA proposal, but is instead looking to resize a number of units across its estate as well as slash, or even temporarily eliminate altogether, rents on others.
Retail Week understands that the retailer is being advised on property restructuring by CBRE, while it was revealed last week that Deloitte was advising Monsoon on financial matters.