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£34m lifeline on offer for Monsoon

The founder of Monsoon Accessorize, Peter Simon, has reportedly said he will inject £34m into the struggling business if landlords agree to cut rents, as part of a company voluntary arrangement (CVA).

It comes after the retailer appointed consultancy firm Deloitte last month to look at options to reduce overall costs as it restructures the business in the UK and internationally.

The proposals do not include immediate Monsoon Accessorize store closures, the Guardian has reported.

Simon has reportedly said he will provide £25m to improve the business, with another £9 million to follow if needed, in return for rent cuts on around two-thirds of its 271 stores.

He is also considering reducing rents that the retailer pays for its London headquarters, which Simon owns, the Sunday Times reported.

Monsoon Accessorize has closed 40 stores in the past two years, and the German arm of the business filed for insolvency in January.

Last June, Drapers reported that Monsoon Accessorize was making up to 14 staff redundant as part of a restructuring. It blamed the difficult trading environment.

Group turnover at Monsoon Accessorize dipped by 9.2% to £422.2m in the year to 27 August 2016, its most recently published results.

EBITDA declined by 16.4% to £20.3m in the same period as the retailer continued to battle a challenging retail market and a “disappointing” performance in Monsoon’s womenswear business.

Filings on Companies House show Monsoon Accessorize chief finance officer Elaine Deste, who was responsible for finance and property across the business, had her appointment terminated on 3 May.

Deloitte declined to comment, while Monsoon Accessorize has been contacted.

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