Monsoon Accessorize is looking at options for the business and said on Sunday that it has been badly affected by the Covid-19 outbreak. A possible sale of the business is one option, with reports that restructuring experts at FRP Advisory are working on the possible scenarios.
The company told Fashionnetwork.com that “Monsoon and Accessorize were trading well until the start of March, ahead of last year and ahead of the financial plan set out at the time of last year’s CVA. In common with all other fashion retailers, trading since then has been badly affected by the outbreak of Covid-19, with the company facing significant pressure on revenues after shutting all of its stores.
“As a result, the board is looking at a range of options to secure the business’s long-term future in these exceptionally difficult times. These options include a potential sale of some or all of the business. No decisions have been made about the timing or nature of any steps the business may take.”
The fashion retailer employs around 3,500 people and there are fears that a significant number of jobs could be impacted by any moves.
That would be no surprise given that the company had been struggling for some time and has been operating under a company voluntary arrangement since last year.
At the time its latest set of accounts were filed last autumn, those accounts flagged up that there could be problems ahead if trading significantly worsened. It’s therefore particularly sad that just as its trading had been improving, it has now not only worsened but been hit by a crisis that's unprecedented in modern retail.