We have seen over the last few years a number of high street retailers face numerous financial struggles as they compete with more shoppers switching to buying online and spending less.
Head of Corporate Recovery and Insolvency at Hewitsons Christopher Mackie represented a client on the recent creditors meeting called to approve the Company Voluntary Arrangement (CVA) and lease renewal for high street fashion retailer Monsoon and Accessorize which was finalised at the beginning of the month.
Christopher Mackie asked probing questions on behalf of the landlord creditors, before the proposals were put to the vote, including as to the timing of the client’s lease renewal negotiations earlier in the year.
The approved CVA provides Monsoon with the agreement from landlords for reductions in rent on nearly 135 of 258 leased UK Monsoon and Accessorize stores. Monsoon have also offered their landlords the opportunity to be part of the profit-sharing scheme if rent cuts are made.
Christopher Mackie comments ‘This CVA demonstrates that commercial landlords would be well advised to query with their tenants whether the tenant has sought insolvency advice in the last 12 months before the landlord agrees to renew the lease’.
Our Corporate Recovery and Insolvency team have many years of experience advising both creditors and debtors, corporate and individuals on a number of Corporate Recovery and Insolvency issues as well as experience in acting for landlords on the high street retail market and providing advice on CVA proposals. If you would like more information on insolvency and recovery or would like to contact Christopher to discuss a matter please call 020 7400 5045 or click here
to email Christopher.