Monsoon founder Peter Simon has offered £34m worth of rescue funds in a bid to win approval for rent reductions from landlords as part of a CVA.
The fashion tycoon has pledged to inject £25m of new cash into the fashion stores in return for rent cuts from landlords. He has also guaranteed a further £9m of funding if needed.
The struggling retailer is working with Deloitte and is understood to be close to launching a CVA in a bid to reduce rents on around two thirds of its 271 stores, with no immediate store closures planned.
Simon, who founded Monsoon in 1973 and Accessorize in 1984, is also considering slashing the rent that the retailer pays for its west London headquarters, which he owns.
The retail group’s 126 larger dual format Monsoon Accessorize stores are understood to be among the chain’s worst-performing outlets.
The struggling retailer lost £10.5m before tax on sales of £423.8m in 2017, its most recent accounts say.
A source told The Sunday Times that Simon is determined not to let the business go under. “He sees it as his legacy,” the source said.
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