Monsoon is not looking to close any stores as part of its delayed CVA proposal, but it is looking to resize a number of units in its estate as well as slash or even eliminate rents on a number of others.
A source close to the retailer said the embattled fashion chain had been in conversation for a number of months with landlords about slashing rents on some stores and getting rent holiday periods on others.
The retailer had tried to achieve these aims without the need for a CVA, but the source said landlords would not have those discussions without the financial restructuring tool being used.
Monsoon is not looking to close any of the stores in its more than 270-strong estate as part of any CVA proposal, but Retail Week understands it is looking to resize a number of its units – both those trading under the Monsoon Accessorize dual fascias and standalone stores.
Retail Week understands Monsoon is also unhappy with the footfall numbers at stores trading in large shopping centres.
The source said while Monsoon is not looking to shutter stores, it is willing to insert short break clauses with landlords and “if in six- or nine-months’ time landlords decide to trigger those break clauses, then that is a matter entirely for them”.
It emerged overnight Monsoon owner and founder Peter Simon had decided to delay launching the CVA, after landlords failed to offer sufficient support to Sir Philip Green’s Arcadia restructuring proposal earlier this week.
Last week, several of those landlords wrote to Arcadia demanding an equity stake in the business in return for supporting any CVA plans.
Arcadia’s CVA was postponed until next Wednesday.
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