// Monsoon Accessorize falls into the red in Ireland
// The retailer’s German arm has already filed for insolvency
// In the UK, Monsoon Accessorize had a CVA approved but this will only involve rent reductions
Monsoon Accessorize’s Irish arm has swung to a loss due to an exceptional charge of €260,000 following a property portfolio review.
For the year ended August 25 last year, the retailer saw profits of €305,000 plunge into the red with a €136,000 loss after it booked an exceptional charge relating to reassessed lease agreements, according to The Irish Times.
Meanwhile, store sales fell nearly five per cent to €12.3 million, but the retailer said it had a “steady overall trading performance” and pointed to a good performance from its own womenswear brand.
Monsoon Accessorize operates eight stores in the Republic of Ireland.
The news comes as Monsoon Accessorize endure a tough trading period in the UK, where creditors recently approved a CVA and its chief executive Paul Allen has quit.
First announced in June, the retailer’s CVA proposals did not include plans for any store closures – of which it operates 258 in the UK.
However, it has closed almost 40 stores in the last two years, as well as relocating and downsizing others.
Following the CVA approval in July, 135 out of the retailer’s 258 branches won rent cuts of between 25 per cent and 65 per cent for up to three years.
Monsoon Accessorize’s Irish locations will not be affected.
However, the retailer’s German arm has already filed for insolvency.