Retail

Monsoon Accessorize poised to close stores


Fashion chain Monsoon Accessorize is the latest British high street retailer to seek a company voluntary arrangement as it aims to cut costs and restructure its business.

The privately owned company, which operates 450 stores in the UK, has appointed Deloitte to start the process, according to a source close to the business.

The controversial insolvency method, by which a company pays down its debts over a stipulated period of time, has been deployed by a number of bricks-and-mortar retailers in the past year as they struggle with higher rents and falling sales.

Philip Green’s fashion conglomerate Arcadia, which owns brands including Dorothy Perkins and Topshop, gift and stationery chain Paperchase and lingerie retailer Ann Summers have all recently announced CVAs.

A Monsoon spokeswoman said that in the “tough” retail environment the chain would be “continuing to look at options” to reduce costs and restructure the business.

“We have made no secret of the fact that we have steadily reduced our store portfolio in recent years and shall continue to do so as leases expire. We are looking at options to accelerate these store closures,” Monsoon added.

In its most recent accounts to August 2017, Monsoon reported a loss before tax of just over £3m, with its parent company Drillgreat reporting losses of just over £10m for the same period. It also noted that the number of employees had fallen from 2,500 to 1,667.

Monsoon’s German arm, which includes 30 stores, filed for insolvency in January.



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