Monsoon Accessorize CVA possible on Thursday, but landlords kick back
Monsoon Accessorize is expected to launch its delayed company voluntary arrangement (CVA) on Thursday but, like Arcadia before it, some of its biggest landlords could be lining up against the deal, according to reports.
The increasing number of CVAs being used by retailers as the foundation of their turnaround plans has put the property sector under massive pressure. And landlords, both smaller companies and the property giants, have been less willing to vote them through, demanding extra concessions for their support.
Retail Week reported that several big names are unhappy about Monsoon’s handling of talks around its CVA and one source accused it of a “disappointing” lack of engagement with creditors in recent weeks.
The company wants to sees radical rent cuts for around two-thirds of its 270 stores, although it’s not planning a big closure programme.
But another property source told the trade magazine that there are doubts over whether the firm’s financial position is weak enough to even require a CVA. There have been a number of commentators in the UK complaining about excessive use of CVAs in recent periods.
It’s unclear just how bad business is at the Monsoon and Accessorize chains at present. Its most recent accounts cover the period to late August 2017 and showed a loss of £3.1 million on turnover of almost £311 million. But it hasn’t filed any counts since then and some commentators said an update would be likely along with the CVA launch.
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