Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Intu hit hardest by Monsoon CVA

Ailing shopping centre owner Intu faces the biggest threat from Monsoon Accessorize’s company voluntary arrangement. 

Monsoon has a total of 19 stores in Intu shopping centres, four of which face rent cuts of more than 50% as part of the retailer’s restructuring, the Sunday Times has reported. Six further stores in Intu malls will have their rents reduced by more than one-third, should creditors approve the CVA on 3 July. 

Monsoon Accessorize has asked landlords to cut rents by up to 65% across more than half of its stores, as part of its CVA launched last week.  Although no closures have been proposed, the company is seeking to exit at least seven Monsoon shops within eight months.

The proposal, seen by Drapers, outlines an expected EBITDA loss of £3m across the businesses for the 2018 financial year, and a revenue fall of 3.2% to £358m. 

Intu was the only major landlord to vote against Arcadia’s CVA earlier this month. In a trading update for the period from 1 January to 2 May, Intu revised its rental income projections as its braced for a “challenging year”. 

Chief executive Matthew Roberts said: ”We expect the remainder of 2019 to be challenging as a result of a higher-than-expected level of CVAs and a slowdown in new lettings as tenants delay their decisions because of the uncertainties in the current political and retail environments.

”As such, we have revised our approach to how we guide towards our year-end like-for-like net rental income to factor in expected CVAs, and have adjusted our 2019 guidance accordingly to -4% to -6%.”

 

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.