Monsoon Accessorize owner buys retailer out of administration, with 545 jobs lost
Monsoon Accessorize founder Peter Simon has bought the struggling business out of administration, in a move which aims to save both brands but cuts 545 jobs in the process.
As a result of the deal, 35 of the company’s stores across the UK will close, resulting in the initial job losses.
Simon will try to renegotiate with landlords to get a better deal on the remaining 162 store leases.
A company announcement said it hopes to save as many as 100 of the remaining stores, meaning more job losses could be around the corner.
However, it is hoped the pre-pack deal could eventually save more than 2,000 jobs which previously hung in the balance.
It comes after the coronavirus lockdown forced the closure of all Monsoon and Accessorize stores, and pushed the company into administration last night.
Simon will make a fresh £15m cash injection, which follows the £12m he invested in the business after its company voluntary arrangement (CVA) in July 2019.
He said: “Ever since I opened the first Monsoon store in Beauchamp Place in 1973, this business has been my passion and my life, and I did not want to see it fall victim to this unprecedented crisis.”
Tony Wright, joint administrator and partner at FRP, said: “We had to move quickly and decisively to secure the future of Monsoon and Accessorize, as many jobs as possible and the presence of these two iconic brands on the UK high street.
“After assessing a range of options this deal achieves those goals with least disruption to the business in an already challenging retail environment.
“We are now committed to working with Adena Brands as they enter talks with landlords to agree future terms across their store portfolio and look to transfer more jobs to the buyer.
“We’ll also be working with the Redundancy Payments Service to support all affected employees through this difficult time.”