Monsoon in rent talks with landlords
Jun 2, 2020
Monsoon Accessorize is asking landlords to consider rent waivers or face store closures as it fights to stay in business.
The retailer told landlords in a letter that they have a week to offer up rent waivers, warning that stores will shut down if property firms demand payment.
The ultimatum was issued on Friday as part of a review of the company’s operations, reported The Guardian.
Media reports surfaced last week suggesting the firm is on the brink of falling into administration. The move raises fears for the future of the chain’s 3,500 employees, as well as its 220 stores.
Monsoon Accessorize is expected to appoint administrators shortly, and advisory firm FRP is working with the company with the aim of minimising its creditors’ losses.
Peter Simon, the 70-year-old founder and owner of Monsoon Accessorize, is thought to be keen to buy the business back after putting it into administration. The manoeuvre could save the struggling business from failing but a source said the retailer is likely to emerge with fewer stores.
The Covid-19 lockdown has had a significant effect on Monsoon’s financial health. The high street crisis also meant that Peter Simon’s personal wealth slumped by £137m to £250m last year, according to the Sunday Times Rich List.
Copyright © 2020 FashionNetwork.com All rights reserved.