Monsoon Accessorize creditors have approved the retailer’s CVA proposals, which will see the retailer seek rent cuts across two-thirds of its store estate.
First announced on June 20, the retailer’s CVA proposals do not include plans for store closures – of which it operates 258 in the UK. Monsoon Accessorize had also offered landlords up to £10 million if it goes on to trade profitably in the future.
In a statement, the retailer said the CVA was approved after a creditors’ vote that was the “majority significantly above the required threshold”.
“We are pleased with today’s result and would like to thank our suppliers and landlords for their continued support,” Monsoon Accessorize chief executive Paul Allen said. “This action will help us to reshape our businesses for the future, and we will now turn our attention to the wider.”
It was initially announced in April that the British retailer was on the verge of calling in advisers for a CVA.
Monsoon Accessorize owner Drillgreat had appointed Deloitte to explore the retailers’ options, including speeding up its store closures scheme and rent reductions on Monsoon and Accessorize’s joint estate of almost 270 stores.
Earlier in the year, it emerged that Monsoon Accessorize was seeking rent cuts on some of its sites, but a spokesman denied that a CVA was on the cards at the time.
It has closed almost 40 stores in the past two years, as well as relocating and downsizing others.