// Monsoon and Accessorize draft in advisers to speed up store closures
// Retailers’ parent company Drillgreat reportedly preparing for a possible CVA
// Earlier this year, the German arm of the retailer filed for insolvency
Monsoon and Accessorize could be on the verge of launching a CVA after the parent company of both retailers called in advisers to accelerate its store closure process.
Drillgreat brought in Deloitte to explore the retailers’ options, including speeding up its store closures scheme and rent reductions on Monsoon and Accessorize’s joint estate of almost 270 stores.
There is also speculation that Drillgreat could be preparing Monsoon and/or Accessorize for a potential CVA.
“The UK retail trading environment is tough and we are continuing to look at options to reduce our overall costs as we restructure the business in the UK and internationally,” a spokesman for Monsoon Accessorize said.
“We have made no secret of the fact that we have steadily reduced our store portfolio in recent years and shall continue to do so as leases expire.
“We are looking at options to accelerate these store closures.”
Earlier this year it emerged that Monsoon Accessorize was seeking rent cuts on some of its sites, but a spokesman denied that a CVA was on the cards at the time.
The retailer has been undergoing a long-running scheme to slim down its store estate as sales move increasingly online.
It has closed almost 40 stores in the last two years, as well as relocating and downsizing others.
Earlier this year, the German arm of British retail chain filed for insolvency, placing the future of 190 staff members working across 30 stores in Germany at risk.
The retailers’ 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.
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.