Monsoon landlords eye equity stake in return for CVA

Monsoon CVA
// British Land, Hammerson, M&G Investments and Roubiax Group demand equity stake in Monsoon in return for CVA support
// Monsoon Accessorize appointed Deloitte to explore the retailer’s options last month

Monsoon Accessorize’s plans for a CVA have hit a snag after four landlords reportedly demanded an equity stake in the retailer in return for supporting its restructure.

According to Sky News, British Land, Hammerson, M&G Investments and Roubiax Group have been negotiating with the fashion retailer’s owner Peter Simon with the goal of securing improved terms in a proposed CVA.

Sky News also reported that a letter written on behalf of the four property firms was sent to Simon this week, which featured a request for a shareholding stake in the business, should any financial restructuring be agreed.

The news comes after reports earlier this week that Simon would inject £34 million into the struggling business if landlords agree to cut rent costs as part of a proposed CVA.

Simon said he would offer £25 million to the business and a further £9 million to improve it overall in return for the rent cuts.

Last month, Monsoon Accessorize appointed Deloitte to look at options to reduce overall costs amid a business restructure.

The proposals do not include immediate Monsoon Accessorize store closures.

The retailer operates 271 stores, 126 of which are the dual-format and reportedly underperforming Monsoon Accessorize stores.

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