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%.”