Monsoon Accessorize creditors approve CVA
Written by Hannah McGrath
Monsoon Accessorize has won the support of its creditors to launch a series of Company Voluntary Arrangements (CVAs) aimed at putting the firm back on a solid financial footing.
In a meeting yesterday, the retail group won a series of votes for its restructuring proposals, securing a “majority significantly above” the required 75 per cent of creditors.
Under the plans, rent cuts will be sought from landlords on two thirds of its store estate. Unlike CVAs planned by its fellow High Street retailers, Monsoon Accessorize currently does not have plans to close any of its 258 stores as part of the financial restructuring. However, more than 40 stores have been closed in previous years.
The move comes after the company decided to hold off a vote on the proposals outlined on 20 June until early this month.
It was reported that Monsoon Accessorize’s founder Peter Simon rejected initial demands from landlords for a minority equity stake in the company in return for approval for the CVA.
Instead, Simon is understood to have offered up to £10 million if the company beats internal forecasts for the coming years.
Paul Allen, chief executive of Monsoon Accessorize, said: “We are pleased with today’s result and would like to thank our suppliers and landlords for their continued support.
“This action will help us to reshape our businesses for the future, and we will now turn our attention to the wider turnaround plan and delivering a sustainable and profitable business moving forward.”