Monsoon Accessorize owner Peter Simon has bought the business out of administration in a pre-pack deal, in a move that aims to save both brands and up to 2,300 jobs.
New holding company Adena Brands, which is controlled by Simon, acquired Monsoon Accessorize after it went into administration last night following the impact of Covid-19 and the closure of all 230 stores.
The deal includes a cash injection of up to £15m by Simon, on top of the £12m he invested in the business following its company voluntary arrangement (CVA) in July last year.
The acquisition encompasses the Monsoon and Accessorize brands and intellectual property, the head office and design teams, and the group’s distribution centre in Wellingborough.
Adena Brands will now enter talks with the landlords of many of Monsoon and Accessorize’s stores to see if they can reach terms to reopen them when the current lockdown ends to secure further jobs. Ultimately the new group hopes to be able to save as many as 100 stores.
Simon 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. 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.
“This deal secures the future of both Monsoon and Accessorize and means we can continue to serve our customers online without a pause. In addition, we will now try to save as many of our stores as possible, depending on the outcome of various discussions with landlords. I would like to thank landlords for the helpfulness and enormous forbearance they have shown so far, which has enabled us to get to this point.
“Ultimately, we hope to be able to save as many as 2,300 jobs in this process, and more than 4,500 in our supply chain, although unfortunately not all of them. We believe that fashion has a future on the high street, and we are prepared to commit time and money making it work.
“Monsoon and Accessorize will both emerge smaller and stronger after this but essentially the same – with our unique design flair and commitment to environmental standards and ethical trading intact. I am looking forward to working with everyone to overcome this crisis and make the next chapter in our history a success.”
