Monsoon Accessorize ‘on the brink of administration’

Monsoon Accessorize is on the brink of calling in administrators, potentially putting around 3,500 jobs at risk.

The fashion retailer, which operates about 230 stores, is expected to file a notice of intention to appoint administrators today, according to Sky News.

Founder Peter Simon is considering another rescue deal, despite investing £12 million of his own money into the business in July last year as part of a Company Voluntary Agreement (CVA) which involved the closure of about 40 stores.

He recently appointed advisory firm FRP to explore a sale of the business, while stores have been closed under the government high street lockdown to help prevent the spread of Coronavirus.

Sofie Willmott, lead retail analyst at GlobalData, commented: “Clothing and footwear is set to be the worst hit retail sector by crisis with spend forecast to fall over 30 per cent this year and Monsoon’s focus on occasionwear has left it particularly exposed to the slump in demand.

“A significant proportion of Monsoon’s range is designed with weddings and other special occasions in mind and with social gatherings on hold for the time being, it is at a disadvantage and cannot leverage other categories like loungewear and activewear, as other clothing specialists have done.”

The retailer is reportedly planning to ask landlords for rent-free deals over the next few months to increase its chance of survival, but Willmott said Monsoon is unlikely to be a retailer that clothing shoppers rush back to.

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