Monsoon and Accessorize owner is to close ‘dozens’ of stores
Monsoon and Accessorize owner is to close ‘dozens’ of stores as bloodbath on Britain’s high street rages on a week after the collapse of Debenhams
- Deloitte appointed to oversee insolvency as high street bloodbath continues
- Monsoon Accessorize confirmed it is trying to ‘accelerate’ closure of stores
- There are almost 270 Monsoon Accessorize branches dotted around the UK
- It comes after Debenhams announced that its stores will also be closing
Monsoon Accessorize has become the latest casualty of Britain’s high street bloodbath as the fashion retailer is set to close ‘dozens’ of stores.
One of Britain’s biggest privately owned clothing firms, it has appointed Deloitte to oversee its insolvency to close stores just one week after Debenhams collapsed.
Sources today told Sky News that a Company Voluntary Arrangement (CVA) will launch within weeks.
Monsoon Accessorize is set to close down as Britain’s high street bloodbath continues to rage up and down the country
The Monsoon Accessorize brand has become the latest casualty on the high street following the closures announced by Debenhams
A creditor will reportedly be sought for ‘dozens’ of closures but exact numbers are yet to be confirmed.
The brand’s largest shops are expected to be the ones earmarked for the earliest closures.
With almost 270 stores across Britain, many are expected to need the approval of landlords if they are to secure rent reduction.
It comes after Debenhams announced that a CVA will hit within a matter of weeks as Sir Philip Green’s Arcadia Group, which includes Dorothy Perkins and Top Shop. Deloitte is advising Arcadia as well as Monsoon Accessorize.
Debenhams fell into administration after rejecting a new offer from Mike Ashley to pump £200million into the department store.
The Sports Direct chief branded the administration of the retail giant a ‘national scandal’.
Debenhams was tore into over the weekend and the board of the chain was called to be investigated
Map shows the average decrease in football in shops across Britain, which fell by 4.2 per cent on average between November 2017 and November 2018
And last month Liam Gallagher’s Pretty Green fashion label announced that it had appointed Moorfields Advisory to handle insolvency across its UK stores as it also oversaw Toys R Us UK’s insolvency last year.
New Look, Mothercare and Carpetright are seeking creditors’ approval to slash cost bases.
Almost 2,500 stores vanished from Britain’s 500 biggest high streets in 2018, a survey by PricewaterhouseCoopers said last week. Nearly 85,000 retail jobs were lost in the UK last year.
A spokesman for Monsoon Accessorize confirmed it is ‘looking at options’ to ‘accelerate’ store closures.
Pretty Green has stores across the UK including this one in London’s Carnaby Street (pictured above)
He cited a ‘tough’ retail trading environment as the reason for a steady reduction in the brand’s store portfolio over the past few years.
Its holding company, Drillgreat, has closed stores upon the expiration of their leases in recent years.
But Monsoon Accessorize remains on the brink of a CVA, an option onlt considered viable by firms facing bankruptcy.
In the year to August 26 2017, the company recorded an operating lost exceeding £10million.
Bloodbath on the High Street: How shops in the UK went from bustling to bust
2018 saw one of the worst years for the UK High Street with retailers shutting their doors and plaguing homes across the country with many job losses.
Crisis hit brands such as House of Fraser and Marks & Spencer fought to keep stores open while other retailers such as New Look pushed for a solution to stop store closures and job losses.
In 2018 nearly 85,000 retail jobs were lost in the UK as businesses continued to go bust as 1,000 retail business went into administration between January and September.
As well as this the number of retail outlets left empty was up by 4,400 in 2018 according to data from the Local Data Company.
House of Fraser (pictured above) is one of the crisis hit brands on the UK High Street
Marks & Spencer has been battling with the UK High Street and had previously struck a deal with Ocado to transform grocery shopping
Last year New Look announced it would be closing 85 stores across the UK
High Street giant Gap has also announced it will close 230 stores worldwide as its US parent company launches a massive restructuring programme.
The pressure on High Street retailers has hit an all-time high as they continue to try and keep up with the ever growing popularity of online shopping.
Online retailers are able to keep prices low as they don’t face the massive rental costs of physical stores or the staff rates.
While retailers battle the rise in online shopping they are also being forced to battle Brexit, as many supply chain routes and whether or not they will be available in a no-deal scenario have put added cost worries onto retailers as many consider stock piling their items or not importing them at all.
GAP (pictured above) also announced it was closing more than 200 stores as part of a worldwide restructuring programme
The rise in online shopping with companies such as Amazon has also put a strain on the High Street
Here are some of the big name retailers which have lost out as they face fierce competition from the rise of online shopping
The carpet retailer is closing 92 stores across the UK. These closures represent nearly a quarter of all UK Carpetright stores.
Toys R’ Us
The UK’s largest toy shop went into administration in February 2018, leading to an estimated 2,000 redundancies.
House of Fraser
The department store chain was on the verge of heading into administration but was rescued at the eleventh hour by Sports Direct owner Mike Ashley.
The electronics giant has gone bust, closing shops across the country and putting thousands of jobs at risk.
The baby and toddler chain is closing 60 shops across the UK putting up to 900 jobs at risk.
Poundworld announced it was going into administration on June 11 after talks with potential buyer R Capital broke down, putting 5,100 jobs at risk.
The DIY chain set to close 42 DIY outlets shut, putting around 1,500 jobs at risk.
Marks & Spencer
The retailer announced in May it plans to close 100 stores by 2022, putting hundreds of jobs at risk.
In August stores in Northampton, Falkirk, Kettering, Newmarket, New Mersey Speke, Stockton and Walsall all ceased trading.
Orla Kiely, the Irish fashion retailer collapsed in September and closed all its stores after a slump in profits.
In December HMV entered into administration with its flagship London Oxford Street having closed earlier this year.
Fashion brand L.Bennett announced it was filing for administration on March 1, 2019. Linda Bennett sent employees an email early in the morning to inform them of the news before it hit news outlets.
In March, Liam Gallagher’s Pretty Green filed a notice of intention to appoint Moorfields Advisory to handle insolvency problems across its UK stores. At the beginning of April JD Sports purchased the company, saving around 70 jobs.
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