‘Dozens of Monsoon and Accessorize’ stores to close as high street pain continues
DOZENS of Monsoon and Accessorize shops could shut across the country as the chains fall victim to the high street's struggles.
The company which runs them, Monsoon Accessorize, has brought in advisers to plan closures, which would put hundreds of jobs at risk.
The chains have nearly 270 stores between them, and it's thought "dozens" could shut as part of a proposed Company Voluntary Agreement (CVA),
A CVA is when a business enters into a deal with its creditors about the debts it owes to avoid administration and collapse.
It's the same process that was used by the owners of New Look and Mothercare to shut shops last year.
It's thought the parent company of Monsoon Accessorize has brought in consultancy firm Deloitte to prepare a CVA proposal.
Which shops did we lose from the high street in 2018?
A NUMBER of familiar high street names hit the rocks last year, including:
- Asda: the supermarket began consulting with staff over potential job losses last year which could total almost 2,500.
- Coast: collapsed into administration in October 2018, putting 300 jobs at risk. 24 standalone stores have been closed, while Karen Millen is understood to have bought the group's brand and website, saving around 600 roles.
- Evans Cycles: up to 50 per cent of its locations will also close, leading to around 650 job cuts.
- Gaucho: the restaurant group prepared to file for administration in July 2018 facing the loss of 1,500 jobs. The Argentinian restaurant had been in talks with potential buyers since May 2018.
- House of Fraser: announced in early August that 31 of its 59 stores would be closing by January 2019. This meant 2,000 jobs were at risk - along with over 4,000 of its brands and concessions. It's now been confirmed that Sports Direct owner Mike Ashley has bought the company.
- Ikea: The Swedish furniture store unveiled plans to cut 350 UK jobs over the next two years as part of a global transformation plan. But it will also add 500 new jobs in spring when the new Greenwich store opens.
- Laura Ashley: the retail chain is expected to close around 40 stores under its new chairman.
- New Look: is looking at plans to close 60 stores in the UK, with its owners considering a possible Company Voluntary Arrangement (CVA), which will allow it to restructure its business and pay-off its debts.
- Pets At Home: the pet chain is likely to cut some jobs next year, having earmarked 30 vet practices at its stores for closure.
- Prezzo: also announced plans to close 100 restaurants putting hundreds of jobs at risk.
- Toys R Us: went into administration earlier this year. The company, for many years a household name in retailing, faced the loss of 3,000 jobs.
The chains confirmed that it is looking at closing more shops as it battles to stay alive in a ";tough" high street environment.
Monsoon Accessorize has already shut 40 shops in the last two years as sales increasingly move online.
The CVA proposals are likely to include rent reductions on the chain's shops, as well as closures, as the business negotiates expiring leases.
The most recent accounts for Drillgreat, the holding company for Monsoon Accessorize, show that the company made a pre-tax loss of £10.5 million in the year to August 26, 2017.
A spokesman for Monsoon Accessorize said: "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.
"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 was reported that Monsoon Accessorize sought rent cuts on some of its stores.
But a spokesman denied that a CVA was on the cards at the time.
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The news comes a week after Debenhams finally fell into administration last week following the failure of Mike Ashley's rescue plans.
Last year, the Sports Direct boss ploughed £90million into House of Fraser, pulling it out from the brink of collapse.
At the time of purchase, he vowed to save 80 per cent of the chain's department stores, but since then shoppers have accused the retailer of morphing into Sports Direct.
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