Monsoon Accessorize’s German arm files for insolvency

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Monsoon Accessorize
// Monsoon Accessorize files for insolvency in Germany
// 190 staff working across 30 stores in the country at risk
// Retailer’s operations at home in the UK not affected by the proceedings

The German arm of British retail chain Monsoon Accessorize has filed for insolvency in a local court in Bavaria, according to reports in the country.

The news places the future of Monsoon Accessorize’s 190 staff members working across 30 stores in Germany at risk.

Restructuring expert Ivo-Meinert Willrodt, from law firm Pluta Rechtsanwalts GmbH, has been appointed as provisional administrator of the fashion and accessories retailer in the country.

“We are currently in the process of obtaining an initial overview of the financial situation,” Willrodt said.

“Business is being maintained without restriction at all branch stores.

“The customers can continue shopping as usual in the local stores.”

The overarching Monsoon Group, which is based in the U, is not affected by the insolvency.

Willrodt added that Accessorize’s online business in Germany is also not included in the proceedings.

Monsoon Accessorize first entered Germany in 2006 and news of its insolvency there comes after a drop in revenues due to changing consumer behaviour.

The retailer’s performance at home in the UK has also been far from perfect.

In November last year, credit insurer Euler Hermes reportedly scaled back its cover by up to a half amid growing concerns about its financial health.

Parent company Drillgreat also reported pre-tax losses of £10.5 million in the year to August 26, dropping from £17.9 million in 2016, with sales remaining flat at £424 million.

Months earlier, Drillgreat had opted to separate Monsoon and Accessorize into individual retail fascias, closing around 140 stores with the joint branding.

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