// Monsoon Accessorize delaying CVA decision after Arcadia’s adjournment
// Owner Peter Simon could still launch a CVA as early as next week
// Monsoon advsiors waiting to see how Arcadia CVA is received before negotiating their own
Monsoon Accessorize owner Peter Simon has delayed plans to restructure the business after landlords postponed a decision for a similar move for Philip Green’s Arcadia, according to the Guardian.
Simon could have launched a company voluntary agreement as early as today, which would have seen Monsoon Accessorize renegotiating store sizes and rent levels with landlords.
The potential CVA already came under scrutiny last week when four Monsoon Accessorize landlords reportedly demanded an equity stake in the retailer in return for supporting its restructure.
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.
It’s believed Simon would inject £34 million into the struggling business if landlords agree to cut rent costs as part of a proposed CVA.
The founder 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, which does not include immediate Monsoon Accessorize store closures.
Deloitte is also working on the CVA deal for Green’s Arcadia, who earlier this week announced that the final decision on securing CVAs for its company is adjourned until June 12.
Arcadia said it needed more time to conduct further dialogue with a few landlords, with a view to securing a final decision on the seven CVAs.
More than one source speaking to the Guardian said Monsoon Accessorize could delay its CVA until next week at the earliest, as Simon and his advisers continue negotiations with landlords.
It’s thought Monsoon Accessorize has been waiting to see how landlords responded to Arcadia’s CVA before moving ahead with their own.
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