Landlords are reportedly seeking more than £30m of rescue funding in the form of equity in Monsoon as part of its company voluntary arrangement (CVA), instead of secured loans.
A group of six landlords, including British Land, Hammerson, M&G Investments and Roubaix Group, have told Monsoon Accessorize founder Peter Simon that they are unlikely to back his CVA proposals if he does not agree, Sky News has reported.
Monsoon Acessorize’s CVA is expected to launch on Wednesday, with a creditor vote to be held in July.
The retailer put its long-awaited restructuring plans on hold earlier this month as it awaited the outcome of Arcadia’s CVA, which offered 20% equity to landlords. The latter was given the green light last week.
It is understood the amount of equity up for grabs in Monsoon is still under discussion, but landlords are pushing for 30%.
Monsoon Accessorize appointed consultancy firm Deloitte in April to look at options to reduce overall costs as it restructures the business in the UK and internationally. Monsoon and Deloitte declined to comment.