The board of UK-based fashion and accessories retailer Monsoon Accessorize is weighing up options to secure the business’s long term future, which could include a sale of the business.
The company, which operates the Monsoon and Accessorize chains, told just-style its trading has been “badly affected by the outbreak of Covid-19.”
It added it had been trading well until the start of March, ahead of last year and ahead of the financial plan set out at the time of last year’s CVA. The company has since faced “significant pressure on revenues” after shutting all of its stores.
“As a result the board is looking at a range of options to secure the business’s long-term future in these exceptionally difficult times. These options include a potential sale of some or all of the business. No decisions have been made about the timing or nature of any steps the business may take.”
Last July, creditors in the business approved its company voluntary arrangement (CVA) proposals seeking rent reductions at just over half of its 258 UK store estate. A CVA is a controversial insolvency procedure that allows a company to reach an agreement with its business creditors to repay its debts to avoid going bust
Clothing retailers across the UK are seeing sales slide as stores remain close as part of a government-enforced lockdown.
UK fashion and home retailer Laura Ashley said at the end of last month it would permanently close 70 stores resulting in 721 job losses.