Monsoon is latest retailer to delay CVA filing
Monsoon Accessorize has delayed its company voluntary arrangement plan in the wake of the delay to Arcadia’s CVA. Reports suggested Monsoon boss Peter Simon had been planning to launch a CVA as early as last Friday.
But the CVA is now expected to happen in the week ahead or even later as landlord talks continue. It’s being overseen by Deloitte, which is also acting for Arcadia.
The Arcadia plan had been put back by a week as management at the firm worked to get landlords on-side and eventually offered them better terms in their quest for rent reductions across the store estate.
CVAs have become extremely common in recent years but the large number of them has put the property sector under huge pressure. Landlords, whose support as major creditors is usually crucial to getting CVAs through, have become resistant to them. That has seen retailers having to scale back amounts asked for in rent reductions and also offering equity stakes and store investment as extra sweeteners.
Monsoon has been around since the 1970s but has stumbled in recent years in the face of a shift online, high rents, too many stores and Brexit issues such as higher costs for imports and consumer caution. Peter Simon has already closed a number of stores and is seeking lower rents on many remaining sites.
He has offered up a £34 million investment package to help his group survive, but landlords appear to want him to offer equity stakes to them as well in return for their on-going support.
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