Monsoon landlords pile on pressure for equity stake

Landlords want Simon to inject £30m of equity funding into a deal, rather than secured loans, Sky News reported.

A group of six landlords – up from four originally – including British Land and Hammerson have signalled that unless Simon modifies his plans they are less likely to back his CVA.

Equity in Monsoon would be distributed among all landlords, not just those which have banded together for collective bargaining.

It is thought that Monsoon Accessorize may unveil its proposals next Wednesday, and creditors will vote on it in July.

The CVA follows that of Arcadia, which earlier this week won approval for its plans after a tense stand-off with landlords that led to the postponement of the original vote and the tabling of improved terms for property owners.

Monsoon Accessorize trades from about 270 stores across the country, and the retailer hopes to cut its rent bill at about two-thirds of the portfolio.

Larger shops jointly trading the Monsoon and Accessorize fascias are thought to have been under particular pressure in harsh high street conditions.

Holding company Drillgreat’s most recent accounts showed an operating loss of just over £10m in the year to August 26, 2017.

Monsoon Accessorize declined to comment.