Fri, 29 May 2020 | ADMINISTRATION
Fashion retailer Monsoon Accessorize is close to entering administration and plans to file a notice of intention to appoint administrators over the coming days. The company is reported to have lined up FRP Advisory to manage the process.
Monsoon Accessorize operates 220 stores across the UK, which have been closed since late March due to the ongoing coronavirus pandemic, and employs around 3,500 staff. It is owned by businessman Peter Simon, who has been seeking a buyer for the business since stores closed in March.
Simon is reportedly considering another rescue deal for the brand, having injected £12 million into it last year. This restructuring deal took the form of a Company Voluntary Arrangement (CVA), through which 135 stores had their rent bills cut and 40 were closed permanently.
Simon is said to still be in negotiations with potential buyers, but insiders have said that a notice of intention to appoint administrators represents a “logical next step” for the company. If the company does enter administration, Simon will reportedly look to buy back a slimmed-down version of the business.
The owner is also expected to write to landlords today to request a rent-free deal for several months, which could enable some stores to survive the current crisis and emerge afterwards. Stores which are refused this are said to be likely to close.
The COVID-19 pandemic appears to have exacerbated the difficulties the company was already experiencing. Analysts have suggested that the business’ focus on occasionwear has meant it is particularly susceptible to the impact of the pandemic.
As stores are closed and special occasions likely to be cancelled for as long as social distancing remains in place, the company has lost a significant chunk of its business without having other categories to fall back on, such as loungewear or sportswear.
In its most recent accounts, to the year ending August 25 2018, the company reported turnover of around £296 million, down from £310.9 million the year prior, and an underlying EBITDA loss of £1.8 million, from an EBITDA profit of £6.9 million in 2017.
View the latest distressed UK businesses here.
Has in excess of 2,100 subscribers, all of whom provide reliable, repeat business on an ongoing basis, in addition to a high volume of customers making one-off purchases. Operates from leasehold premises; however, the company could be relocated to a...
RELOCATABLE
Flagship retail store specialising in the highest-end brand of sewing machines. Loyal and affluent clientele coming from all over the UK (and overseas). This business has been a leader in the field for 24 years. The sewing machine market is booming,...
LEASEHOLD
A long-established provider of promotional merchandise both plain and branded for a high-calibre client base. Using a large network of suppliers the company boasts a vastly comprehensive range. Dedicated staff nurture client relationships and promote...
|
07
|
|
Jul
|
Construction contractor owed creditors £11m when it collapsed | BUSINESS NEWS
Lancashire-based contractor Construction Partnership UK owed...
|
06
|
|
Jul
|
Aviation claims specialist enters administration | ADMINISTRATION
Didsbury-based aviation claims specialist Flight Reclaim has...
|
03
|
|
Jul
|
Next completes sale and leaseback of head office and warehouses | COMMERCIAL PROPERTY
High street fashion retailer Next Plc has confirmed the succ...
Sign up to receive our acquisition alert emails to get your FREE guide
|
09
|
|
Apr
|
Long Eaton furniture manufacturer enters administration | ADMINISTRATION
Long Eaton-based furniture group JDP Furniture has entered a...
|
19
|
|
Feb
|
On-demand laundry app snapped up after administration | BUSINESS SALE
Laundrapp, an on-demand laundry service which was touted as ...
|
28
|
|
Nov
|
Peacocks to rescue Bonmarche | BUSINESS SALE
Peacocks has agreed a deal with administrators to rescue riv...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources