CVAs on the Rise: Monsoon Accessorize Joins List of Struggling Retailers

  • Monsoon Accessorize preparing for CVA
  • Deloitte appointed to draw up CVA
  • Possible closure of dozens of stores
  • Retailer looking to reduce rents and costs

Women’s clothing and accessories retailer Monsoon Accessorize is reportedly preparing to enter a Company Voluntary Arrangement (CVA) with Deloitte, which could lead to the closure of dozens of its stores. The move aims to prevent insolvency by closing loss-making locations and reducing rent costs. While the exact number of closures remains undecided, Monsoon Accessorize’s largest stores are at risk. With 270 outlets in their portfolio, they have previously reported an operating loss of over £10m for the year ending August 26, 2017. A spokesperson stated that the UK retail environment is challenging and they will continue to reduce store portfolios as leases expire. Monsoon Accessorize joins other struggling retailers like New Look, Mothercare, and Paperchase in considering CVAs to cut costs through rent reductions.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Monsoon Accessorize’s financial situation and its plans for a CVA. It also compares it with other retailers that have taken similar measures to cut costs. However, the article lacks some details on the exact number of stores that may close and the current state of the company’s finances.
Noise Level: 3
Noise Justification: The article provides relevant information about Monsoon Accessorize’s potential CVA and its impact on the company’s store closures. However, it lacks in-depth analysis or exploration of broader trends in the retail industry and does not offer significant insights beyond reporting on a specific company’s situation.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses Monsoon Accessorize’s potential CVA, which will impact its store closures and rent reductions, affecting the retail sector and potentially impacting related companies such as landlords and suppliers. It also mentions other retailers like New Look, Mothercare, and Paperchase that have entered CVAs to cut costs.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk