Monsoon owner Peter Simon has postponed the fashion chain’s restructuring plans after landlords failed to offer sufficient support to Sir Philip Green’s Arcadia CVA earlier this week.
Simon had plans to launch a CVA as early as today, according to The Guardian, which would enable him to reduce the size of some of its stores and slash rents on others.
The process, which would involve winning support from landlords and creditors to reduce rents on approximately two thirds of its 271-strong store estate, is now expected to be delayed until next week at the earliest as Simon continues to negotiate the CVA terms with landlords.
It is understood that the Monsoon and Accessorize founder has already offered to inject up to £34m into the business to keep its 270 stores afloat.
Advisory firm Deloitte – leading the retailer’s CVA process – is also responsible for Arcadia’s restructuring plan.
Multiple sources told The Guardian that Monsoon had been waiting for Arcadia’s CVA outcome before it went ahead with negotiations with its own landlords.
Last week a number of those landlords wrote to the fashion retailer demanding an equity stake in the business in return for supporting any CVA plans.
Arcadia’s CVA verdict was postponed until June 12th after failing to win sufficient support from landlords in voting this week.