Monsoon Accessorize Ireland has submitted an “unavoidable” application to the High Court to appoint an Examiner as it considers restructuring its finances, it has been announced.
Applying for the appointment of Price WaterhouseCoopers’ (PwC) Declan McDonald as Examiner, Monsoon Accessorize Ireland is hoping that McDonald will formulate proposals to restructure the company’s finances.
Renegotiating rents with landlords will be a huge part of the restructure, Retail Gazette understands, as landlords have proved inflexible, forcing the retailer to call on the courts to renegotiate a reduction in cost.
“We very much regret having to take this course of action, but after our negotiations with landlords failed to deliver a workable proposal we realised we had no option given the on-going level of losses in the business,” Gail Ford-Hills, Retail Director for Monsoon Accessorize for Britain and Ireland, said.
“If the appointment is approved by the High Court we will work closely with Mr MacDonald to come up with the best possible solution to strengthen MAIL and secure its position in the Republic of Ireland for years to come.”
Trading in the Republic of Ireland remains particularly tough as the country struggles economically and last month the Irish arm of home & DIY retailer B&Q also called in an Examiner in a bid to ensure its survival in the ongoing recession.
While further details of Dreams’ Examinership are not expected until next week, the retailer pointed out in a statement that it will work to prioriotise the needs of its staff, “who continue to serve the business loyally.”