Monsoon seeks rent reductions, no CVA plans 'currently'
Monsoon Accessorize is the latest fashion retail company to be seeking rent reductions, according to a report, with the Monsoon chain in particular having asked landlords for rent cuts.
The Mail on Sunday said that the company is also mulling an acceleration of its store closure plan. It has already closed 40 locations in the past two years but still operates 268 shops in a retail market in which fewer shoppers are visiting physical stores.
A company spokesman told the newspaper at the weekend that there were "currently no plans" for a company voluntary arrangement (CVA), an option that could give it an easier route to exiting onerous lease deals.
But he added: “The UK retail trading environment is tough and we are continuing to look at options to reduce our overall costs as we restructure the business in the UK and internationally. We have steadily reduced our store portfolio in recent years and shall continue to do so as leases expire. We will look at options whether to accelerate these store closures.”
Only last week it emerged that the German Monsoon Accessorize business had filed for insolvency and late last year we heard that insurer Euler Hermes had cut coverage of the firm’s suppliers, following three years of losses at the business.
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