British Land withdraws Monsoon Accessorize legal challenge
British Land has reportedly withdrawn its legal challenge to Monsoon Accessorize’s restructuring plan, giving the fashion retailer the green light to implement the rescue proposals.
The landlord has agreed to abandon a case that could derail the chain’s company voluntary arrangement, Sky News reported.
Read more: British Land files legal challenge against Monsoon Accessorize CVA
The CVA proposals will see rents cut by between 25 per cent and 65 per cent at more than half of Monsoon’s 258 UK stores.
More than 90 per cent of creditors backed the plans earlier this year however British Land, which owns five Monsoon stores, voted against the proposals.
The FTSE 100 property giant was reportedly unhappy about the structure of funding provided by Monsoon owner Peter Simon.
British Land, which owns Sheffield’s Meadowhall Shopping Centre, alleged that Simon failed to listen to landlord concerns about the terms of other CVAs.
The agreement comes after Debenhams this month won a high court battle with landlords to push through its CVA proposals.
Read more: Monsoon Accessorize chief executive Paul Allen quits
Sports Direct owner Mike Ashley funded Combined Property Control Group’s legal challenge against the department store’s restructuring plan after his significant shareholding was wiped out when Debenhams was taken private in a rescue deal.
The retailer plans to close 50 stores and slash rents at 100 sites.