Monsoon Accessorize to close dozens of stores and cut 500 jobs in bid to save company

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The move would cut more than 500 jobs and close 35 shops. Following the closures, there will be 162 remaining Monsoon Accessorize outlets in the UK.

Like many other high street retailers in this predicament, Mr Simon’s company Adena Brands is set to negotiate with landlords of the remaining stores.

This is ahead of shops reopening in the UK on June 15 as some lockdown measures are lifted on Monday.

The firm said it hopes to save as many as 100 of the remaining shops with these measures, meaning there could be more cuts on the horizon.

Countdown blunder: Rachel Riley's huge mistake after replacing Carol Vorderman exposed

Monsoon Accessorize are to close dozens of stores and cut 500 jobs. (Image: Getty)

Countdown blunder: Rachel Riley's huge mistake after replacing Carol Vorderman exposed

Debenhams, Kath Kinston, Oasis and Warehouse have also recently entered administration. (Image: Getty)

The rescue package is set to preserve around 2,300 jobs.

Monsoon Accessorize was teetering on the edge of administration, and had a week earlier warned it faced permanent closures if landlords didn’t waive rent.

The stores, deemed “non-essential” by the Government, have been closed since late-March.

Mr Simon has also moved to inject £15million into the ailing business.

READ MORE: Debenhams closing: More stores to close permanently

Countdown blunder: Rachel Riley's huge mistake after replacing Carol Vorderman exposed

FRP Advisory was signed up to assist as a joint-administrator last night. (Image: Getty)

This was following a £12million boost he invested when the business entered a company voluntary arrangement (CVA) in 2019. The CVA was intended to save it.

The buyout deal from Mr Simon’s company Adena Brands, covers the retailer’s brands, head office and distribution centre.

FRP Advisory was signed up to assist as a joint-administrator last night.

Mr. Simons said: “Ever since I opened the first Monsoon store in Beauchamp Place in 1973, this business has been my passion and my life, and I did not want to see it fall victim to this unprecedented crisis.

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Countdown blunder: Rachel Riley's huge mistake after replacing Carol Vorderman exposed

Primark is in negotiations with its landlords. (Image: Getty)

“Both Monsoon and Accessorize were trading well before the coronavirus pandemic but the business simply could not withstand the financial impact of having to close all its UK, franchise and joint venture stores for almost three months,” he continued.

Tony Wright, joint administrator and partner at FRP, said: “We had to move quickly and decisively to secure the future of Monsoon and Accessorize, as many jobs as possible and the presence of these two iconic brands on the UK high street.

“After assessing a range of options this deal achieves those goals with least disruption to the business in an already challenging retail environment.

“We are now committed to working with Adena Brands as they enter talks with landlords to agree future terms across their store portfolio and look to transfer more jobs to the buyer.

“We’ll also be working with the Redundancy Payments Service to support all affected employees through this difficult time.”

Since coronavirus lockdown measures have kicked in, many retailers have moved to negotiate rents with landlords as they haemorrhage money.

Countdown blunder: Rachel Riley's huge mistake after replacing Carol Vorderman exposed

Since coronavirus lockdown measures have kicked in, many retailers have moved to negotiate rents. (Image: Getty)

Last week, The Sunday Times reported Primark had moved to force a select group of landlords to sign gagging orders as it continues to pay them rent, after refusing to stump up cash to others.

Primark said “confidentiality agreements are standard practice” in commercially sensitive business talks after refusing to declare how many of its UK landlords had received payments.

The CFO of Sports Direct, Chris Wootton also called for Government support to save retailers on the brink of collapse.

Debenhams, Kath Kinston, Oasis and Warehouse have also recently entered administration.


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