British Land files legal challenge against Monsoon Accessorize CVA
British Land has filed a legal challenge against Monsoon Accessorize’s recently agreed rescue plan, which will see the retailer slash rents across more than half its UK stores.
The owner of Sheffield’s Meadowhall shopping centre is aiming to block the retailer’s company voluntary arrangement (CVA) following its approval in July, Sky News reported.
Read more: Monsoon Accessorize chief executive Paul Allen quits
The CVA proposals would see rents cut by between 25 per cent and 65 per cent at more than half of Monsoon’s 258 UK stores.
British Land, a FTSE 100 landlord, owns five Monsoon stores, and voted against the restructuring proposal, which was backed by more than 90 per cent of creditors.
The property giant is reportedly unhappy about the structure of funding provided by Monsoon owner Peter Simon, and alleges that Simon failed to listen to landlord concerns about the terms of other CVAs.
Sources told Sky News that there was a chance that the challenge could be settled before it reaches court as talks between the parties are ongoing.
A number of high street giants have recently faced opposition to their restructuring plans.
Read more: Creditors approve Monsoon Accessorize rescue plan
Debenhams is in court this week to fight a challenge backed by Sports Direct owner Mike Ashley.
Topshop tycoon Sir Philip Green was also forced to delay the restructuring process of his retail empire Arcadia after two US landlords filed complaints against the CVA.
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