Fashion retailer Monsoon Accessorize is reportedly planning a spate of store closures using a controversial insolvency mechanism, in another blow for Britain’s embattled high streets.
The chain, which trades from nearly 270 stores across the UK, could announce “dozens” of closures in the coming weeks.
Sky News reported the group has tasked Deloitte with preparing a Company Voluntary Arrangement (CVA), which would seek creditor approval for the closures. Sources said precise numbers had yet to be finalised.
Sites containing both the Monsoon and Accessorize brands are facing the worst struggle and are most likely to close, one insider reportedly said.
The UK’s high streets continue to face an uphill struggle after Debenhams went into administration last week, to be taken over by its lenders, with a CVA expected in the coming weeks.
A spokesman for the retailer told Sky: “The UK retail trading environment is tough and we are continuing to look at options to reduce our overall costs as we restructure the business in the UK and internationally.
“We have made no secret of the fact that we have steadily reduced our store portfolio in recent years and shall continue to do so as leases expire.
“We are looking at options to accelerate these store closures.”
A CVA is usually only viable when a company is facing bankruptcy.
Monsoon Accessorize is one of the UK’s biggest privately-owned fashion retailers, still held by its founder Peter Simon.