High street retailer Monsoon Accessorize is on the brink of administration, having suffered from the impacts of the ongoing coronavirus crisis.
The business is preparing to file a notice of intention to appoint administrators as soon as tomorrow. Advisory firm FRP Advisory is lined up to handle the process.
Drapers understands various parties have already shown interest in the business. Potential offers vary on the inclusion of the business’s 220 store portfolio.
The group, owned by entrepreneur Peter Simon, employs around 3,500 people across the UK.
It comes less than a year since the company successfully launched a Company Voluntary Arrangement (CVA), that saw rent cuts and around 40 of the 258 stores that Monsoon had at the time permanently closed.null
Sofie Willmott, lead retail analyst at GlobalData, said: “Monsoon Accessorize was one of the many retailers looking unsteady on its feet prior to the COVID-19 pandemic, with its CVA launched in July 2019 not enough on its own, to secure the long term future of the business. Monsoon’s focus on occasionwear has left it particularly exposed to the slump in demand. A significant proportion of Monsoon’s range is designed with weddings and other special occasions in mind and with social gatherings on hold for the time being, it is at a disadvantage and cannot leverage other categories like loungewear and activewear, as other clothing specialists have done.
“The retailer is reportedly planning to ask landlords for rent-free deals over the next few months to increase its chance of survival but Monsoon is unlikely to be a retailer that clothing shoppers rush back to. With social distancing set to remain throughout 2020, special occasions will be pushed back and Monsoon will struggle to encourage spend.”
Monsoon Accessorize declined to comment.