Monsoon Accessorize has asked landlords to approve rent reductions across more than half of its stores as part of its company voluntary arrangement, which launched yesterday.
The high street chain wants to reduce rents on 135 out of its 258 store portfolio as it tries to cut costs and get the business back on track.
The CVA proposes rent reductions ranging from 25% to 65%. Those facing the highest rent cuts include Accessorize stores in Bury, Dundee, Gloucester and Reading.
To help win support for this rescue plan, the company’s multi-millionaire owner, Peter Simon, has agreed to hand over up to £10 million of future profits to landlords if the business goes on the be profitable.
As part of the proposals, Monsoon and Accessorize’s owner and founder has given an £18million interest-free loan to the company, in addition to £12million he has already loaned to fund the turnaround plan.
Simon has also agreed to take a 50% rent cut on the group’s head office, which he owns.
Stores will also face a varying levels of business rates reductions, from 40% to 20% dependent on the severity of rent cuts.
The company has confirmed no stores are to be closed and jobs are not expected to be lost through the restructuring.