Monsoon Accessorize CEO Paul Allen has decided to leave the business. Drapers understands the business does not plan to replace him.
Allen has been with the retailer for six years, initially as finance director. Monsoon Accessorize said he was “instrumental in leading the successful company voluntary arrangement process” to enable it to restructure its store estate.
In July, Monsoon Accessorize creditors approved the retailer’s CVA, which asked for rent reductions of up to 65% across more than half of its stores.
Monsoon Accessorize founder Peter Simon said: “I would like to personally thank him for his contribution and wish him well for the future.”
John Stevenson, Peel Hunt analyst, was positive about the plan to continue without a chief executive: “Monsoon has been through a couple of chief executives – do they need that extra layer of management? They’ve already got a COO there and the majority shareholder and founder as well. What is the purpose of a CEO at this stage?
“It’s the founder that has the skill set. The CVA is not something you need a massive board to deliver – as long as you’ve got the skillset in the business.”
Richard Hollister, managing director of executive search agency Retail Executives, agreed that the departure is a positive development: “Peter’s got a clear vision and he’s in the driving seat now to carry that out. He’s an active chairman, so was always there and can now take it in his own direction.
“It’s certainly not a surprise he wants to be more hands-on. They’ve gone through bad times recently with a CVA and he wants to keep the reins on the business. As with all owners, he is very passionate about the business, and usually they do the best.”