Monsoon Accessorize bought by founder, cuts 500+ jobs
The survival of fashion retail group Monsoon Accessorize has come at a cost. Founder Peter Simon has bought the business from Adena Brands, the company he controls. He moved quickly after the business went into administration on Tuesday, citing the impact of Covid-19 and the lockdown since late March.
Although the pre-pack deal rescues “at least” 100 of the 230 stores, 35 of those stores and 545 jobs will be cut with immediate effect. More could follow.
The deal covers the Monsoon and Accessorize brands, the HQ, design teams, intellectual property, and its distribution centre. Simon will inject up to £15 million in cash into the 'new' business, in addition to the £12 million he pumped in at the time of the CVA last year.
And the firm is now set to enter talks with store landlords to see if they can reach terms to reopen them once the coronavirus lockdown ends on Monday.
Before the administration, Monsoon Accessorize employed 2,300 people across its stores and 4,500 in its supply chain.
“Both Monsoon and Accessorize were trading well before the coronavirus pandemic but the business simply could not withstand the financial impact of having to close all its UK, franchise and joint venture stores for almost three months,” Simon said.
“This deal secures the future of both and means we can continue to serve our customers online without a pause. In addition, we will now try to save as many of our stores as possible. I would like to thank landlords for the helpfulness and enormous forbearance they have shown so far. We believe that fashion has a future on the high street, and we are prepared to commit time and money making it work.”
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