Monsoon Accessorize considers options due to Coronavirus outbreak
Monsoon Accessorize is mulling options for the business due to being severely impacted by the Covid-19 outbreak. The sale of the company is a potential option, with reports that restructuring experts at FRP Advisory are working on the possible scenarios.
In a statement the company said: “Monsoon and Accessorize were trading well until the start of March, ahead of last year and ahead of the financial plan set out at the time of last year’s CVA. In common with all other fashion retailers, trading since then has been badly affected by the outbreak of Covid-19, with the company facing significant pressure on revenues after shutting all of its stores."
“As a result the board is looking at a range of options to secure the business’s long-term future in these exceptionally difficult times. These options include a potential sale of some or all of the business. No decisions have been made about the timing or nature of any steps the business may take.”
Monsoon employs around 3,500 people and is concerned that a significant number of jobs could be impacted by any moves.
The high-street retailer has been struggling for some time and has been operating under a company voluntary arrangement (CVA) restructuring deal. Last year, Monsoon's founder, Peter Simon committed to £30 million in loans to support the business in response to the CVA.