Monsoon saves 57 more stores after landlord truce on rents
MONSOON Accessorize is to keep 57 more stores open than initially planned after a raft of landlords agreed to new turnover-based rents.
The failed chain’s administrator FRP Advisory now hopes to preserve 157 of the company’s 230 branches, saving 2,400 jobs following its collapse in the middle of lockdown. Sites will reopen by the end of July.
Parts of the business were swiftly bought by its founder Peter Simon when Monsoon Accessorize fell over earlier this month.
He acquired the brands and the intellectual property, the head office and the design teams, and its distribution centre – but not the stores, which are being run by FRP for now.
When the company collapsed into administration, 35 outlets were permanently closed and 545 staff made redundant.
Mr Simon – who injected £15m of his own cash to keep the business afloat – said he was grateful to landlords for being helpful during a difficult process.
He said: “Monsoon and Accessorize will continue to have a strong presence on the high street.
The majority of landlords are understood to have agreed to turnover-based rents.
Retailers are increasingly asking to switch to pay rent based on how much money each shop makes, especially after almost three months of non-essential stores being shut.
A string of firms including New Look and Mike Ashley’s Frasers Group have asked for changes to their rent bills.
AllSaints also said it is seeking to change the way it pays rent after warning that a small number of branches will not reopen.
Monsoon, which employs about 3,500 staff, started life in 1973, when former market stall trader Mr Simon opened his first store in Beauchamp Place, London.
He injected another £12m of his own cash into the business when it was restructured less than a year ago. The retailer is understood to have been trading profitably when coronavirus hit.
Monsoon has secured a rent deal