Monsoon Accessorize delays CVA proposal after Arcadia delays its vote
Monsoon Accessorize is reportedly putting its proposal for a CVA on ice following Sir Philip Green's failure to get his bid approved by landlords this week.
Arcadia has delayed its crunch CVA vote until 12 June to allow it more time to persuade landlords to back the bid. The Pensions Regulator and some landlords had indicated they would approve Arcadia's plans but rebel landlords, including Intu, M&G and Aviva, said they would not leading to the vote being pulled at the last minute.
According to The Guardian the incident has persuaded Monsoon Accessorize founded Peter Simon to delay his proposed bid for a CVA. Last month it was revealed that Simon had promised to inject £34m into the business in exchange for landlords approving plans that would lead to rent reductions across its 270-strong store estate.
It was subsequently reported that landlords had demanded they be given a stage in Monsoon Accessorize as part of a deal. Arcadia had offered landlords a 20% stake, which in the event proved insufficient to persuade them all to back the deal.
While Simon has not taken dividends out of Monsoon Accessorize for a number of years, his property company Adena is paid £5m per annum for the lease of the retailer's headquarters in London. He has indicated that he would also look to reduce this sum to gain approval for a CVA.