// Monsoon Accessorize could fall into administration in the coming days
// It has reportedly lined up FRP Advisory to file a notice of intention to appoint administrators
// The move could place 3500 jobs at risk of redundancy
Monsoon Accessorize is reportedly on the brink of falling into administration, which could place 3500 jobs at risk of redundancy.
According to Sky News, the fashion retailer is readying FRP Advisory to file a notice of intention to appoint administrators in the coming days.
Should it eventuate, Monsoon Accesorize would join a growing list of retailers that have opted for some sort of insolvency or business sale process since the start of the coronaviris crisis.
- Monsoon Accessorize warns suppliers on order cancellations
- Monsoon Accessorize mulls sale as Covid-19 dents trading
- Monsoon Accessorize still in critical condition despite CVA
FRP Advisory has already been working with Monsoon Accessorize since the end of March, when they were drafted in to explore options for the business shortly after the government-mandated lockdown of all non-essential shops forced the retailer to close its 220 stores.
Prior to the coronavirus pandemic, the retailer had been struggling and was in a critical condition last year despite the CVA it secured in July.
Monsoon Accessorize’s owner, Peter Simon, has reportedly been seeking a sale of the business but is yet to find a buyer.
However, reports indicate he is in talks with a number of potential bidders and Simon himself could still buy back a portion of the business should it collapse.
When Monsoon Accessorize launched its CVA in July last year, it led to the closure of 40 stores and rent reductions on 135 other sites.
Simon also invested £12 million of his own money into the business as part of the CVA.
He is reportedly going to write to landlords to ask for rent-free deals for several months so Monsoon Accessorize’s stores can continue trading after lockdown ends from June 15.
Other retailers that have fallen into administration since the coronavirus pandemic gripped the UK include Laura Ashley, Cath Kidston, Debenhams, Oasis & Warehouse, Antler, Animal, Lombok, BrightHouse and Johnsons Shoes.