Creditors approve Monsoon Accessorize rescue plan
Creditors have approved Monsoon Accessorize’s restructuring plan today which will see rents slashed at more than half of the fashion retailer’s leased stores.
The store said its company voluntary arrangement (CVA) proposals had passed “with a majority significantly above the required threshold”.
Read more: Creditors prepare to vote on Monsoon Accessorize rescue plan
In total, rent will be cut at 135 of Monsoon and Accessorize’s 258 stores and the retailer’s founder Peter Simon will inject an additional 18m into the business. This follows an emergency £12m loan provided earlier this year.
In a bid to win over landlords Simon had offered them up to £10m if the business makes a profit and beats its forecasts following the restructuring plan.
No stores are earmarked for closure under the plans.
Paul Allen, Monsoon Accessorize chief executive, 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 business for the future, and we will now turn our attention to the wider turnaround plan and delivering a sustainable and profitable business moving forward.”
Read more: Monsoon asks landlords to back rent cuts as part of rescue plan
The move follows a string of CVAs by prominent high street retailers which are facing a number of challenges as increasing costs, the rise of online shopping and subdued spending take their toll on the industry.
Last month Sir Philip Green’s retail empire Arcadia, which owns Topshop and Dorothy Perkins, received backing to close 23 stores and allow rent cuts of up to 70 per cent at nearly 200 branches.