Monsoon Accessorize Ireland has revealed it has been making losses “for some time” and has filed a notice to appoint an examiner.
The fashion and accessories retailer, which has 20 stores in the Republic of Ireland, submitted an application to the High Court to appoint PwC examiner Declan McDonald.
If the application is approved by the courts, the retailer will trade as normal while the examiner looks to strengthen the business’ finances.
Monsoon Accessorize blamed the business’ difficulties on the tough economic conditions in Ireland and the high costs of its store leases. It said it has been making losses “for some time”.
It said talks with landlords earlier this month to negotiate a reduction in the cost of its leases with its landlords in order to “place the business on a strong financial footing” failed.
The retailer will continue to honour gift cards and credit notes.
It has traded in the country for 18 years and said it “remains wholly committed to operating in the country, but it cannot continue to suffer such significant losses for an indefinite period”.
Monsoon Accessorize retail director for Britain and Ireland Gail Ford-Hills said: “We very much regret having to take this course of action, but after our negotiations with landlords failed to deliver a workable proposal we realised we had no option given the ongoing level of losses in the business.
“If the appointment is approved by the High Court we will work closely with Mr MacDonald to come up with the best possible solution to strengthen Monsoon Accessorize Ireland and secure its position in the Republic of Ireland for years to come.”