Mon­soon saves 57 more stores af­ter land­lord truce on rents

The Daily Telegraph - Business - - Business - By Laura Onita

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

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.