British fashion retail chain Monsoon Accessorize is reportedly considering a company voluntary arrangement (CVA) in a bid to restructure its business.
With a network of 270 stores, the retailer is set to close ‘dozens’ of its stores and seek rent reductions on some of its sites, to continue operating the remaining stores, according to Sky News.
Accountancy firm Deloitte has been appointed to assist with the insolvency procedure.
A Monsoon Accessorize spokesperson told Sky News: “The UK retail trading environment is tough and we are continuing to look at options to reduce our overall costs as we restructure the business in the UK and internationally.
“We have made no secret of the fact that we have steadily reduced our store portfolio in recent years and shall continue to do so as leases expire. We are looking at options to accelerate these store closures.”
Deloitte declined to comment on its position in assisting Monsoon Accessorize.
“We are continuing to look at options to reduce our overall costs as we restructure the business in the UK and internationally.”
Monsoon Accessorize is the latest UK fashion retailer be hit by the decline of the high street, after department chain Debenhams fell into administration last week.
GlobalData senior retail analyst Chloe Collins said: “It is essential that Monsoon Accessorize, like many other retailers over the last few years, works to reduce its high street presence.
“Monsoon, which commands just a 0.5% share of the UK womenswear market, has limited brand appeal and an unclear position on the high street. Little trend influence and higher price points than many of its rivals has meant that it has struggled to drive footfall and differentiate itself. With increased competition from the likes of Sosander, Mint Velvet and Hush, Monsoon has little opportunity to regain lost market share.
“Despite its own challenges, Accessorize has more potential to regain shopper spend if ranges become more fashion forward and the brand leverages social media to increase desire among a younger demographic.
“With store closures inevitable, it must protect and invest in its prime locations, namely travel retail sites, where high volume footfall, a captive audience and impulse shopper motivations suit the Accessorize proposition.”