Intu braced for hard hit from Monsoon Accessorize CVA
Shopping centre operator is set to be one of the hardest hit by the proposed Monsoon Accessorize CVA.
The fashion chain has 19 stores in Intu centres across the country (it operates around 270 stores in total) and is seeking deep rent cuts from landlords as part of its financial restructuring.
According to The Sunday Times, four of the Intu stores are facing a 50% reduction in rent which a further six will have their rents cut by more than 30% if the proposal is voted through by creditors on 3 July.
Intu was the only major landlord to opposed the Arcadia CVA earlier this month but the deal was approved at a delayed vote after Arcadia owner Sir Philip Green offered a number of concessions to sweeten the deal, including an additional £10m in cash per annum to offset rent cuts, after it looked like the deal would be rejected at the first time of asking.
Monsoon Accesssorize owner Peter Simon has proposed investing £34m into his business and is offering landlords a share in future profits in exchange for approval of the deal. He has stopped short of offering a stake in the business, as Arcadia had done, to get his deal over the line.
Simon's chain is said to be less reliant on the majority of its landlords getting behind the deal as they hold a lower percentage of votes than those in the Arcadia case. In CVA 75% of creditors by value must approve a deal and Monsoon Accessorize is said to have large creditors in the form of clothing suppliers whose backing will be crucial.
The company has also revealed that its credit insurance has been cut meaning it must now pay for goods and services up-front.