Monsoon and Accessorize to ax stores as massacre remains on the High Street
Monsoon Accessorize is preparing to close stores in the latest blow to the besieged High Street.
The clothing and jewelery retailer, which has 270 Monsoon and Accessorize stores and 4,000 employees across the UK, is also looking for rent reductions for its stores as part of a controversial insolvency procedure, a business-free arrangement.
It has appointed accountant Deloitte to assist with the revision.
High street wee: Monsoon Accessorize prepares to close stores and seeks rent reductions for other stores as part of a controversial insolvency proceeding
A series of chains closes stores and cuts, including Marks & Spencer, Debenhams and Topshop owner Arcadia.
A Monsoon Accessorize spokesperson said: “The retail trading environment is difficult and we continue to look for options to reduce our total costs while we restructure the UK and international operations.
& # 39; We have made no secret that we have steadily reduced our retail portfolio in recent years, and we will continue to do so as leases expire. & # 39;
According to the most recent accounts for Monsoon Accessorize's parent company, Drillgreat, the group suffered a loss of £ 12.6 million in the year to August 26, 2017.
The group has been closing stores for a number of years while online shopping is shrinking. In its latest accounts, the company said that customers who go online & # 39; have major implications for our company & # 39; and they claim it & # 39; as a matter of urgency & # 39; is being tackled.
The launch of the CVA will increase concerns about the future of the main street.
Crippling business rates, high rents and an attack by online retailers put pressure on bricks and mortar stores.
Thousands of stores were closed last year and more than 175,000 jobs are expected to disappear from High Street this year.
New Look, Mothercare and House Of Fraser have launched CVA & # 39; s in recent months. The procedure is used by retailers who would otherwise likely go bankrupt, with Toys R Us and Maplin employing the agreement before they eventually went bankrupt.
Meanwhile, Debenhams and Sir Philip Green & # 39; s retail empire Arcadia are also expected to launch CVA & # 39; s in the short term.
Monsoon was founded in 1973 by Peter Simon, who was inspired by the bohemian, hand-printed clothing that he discovered on his travels through Ibiza, Afghanistan and India.
Simon, who still owns the company, opened his first store in Knightsbridge, London, which has since closed. A little over a decade later, he opened the first Accessorize store in Covent Garden.
- Mike Ashley & # 39; s Sports Direct has been accused of & # 39; making a profit for people & # 39; while it is preparing to close a warehouse in Wigan, which will result in the loss of 300 jobs. Trade union GMB called the move a & # 39; body blow for the northwest & # 39 ;.