Monsoon Accessorize pursue CVA

24/04/2019

Fashion retail chain Monsoon Accessorize is looking to enter into a company voluntary arrangement (CVA) to stay afloat, with accountancy group Deloitte hired to help secure the arrangement. “Dozens” of the chain’s 270 stores across the UK are expected to close if the procedure goes ahead, with rent reductions likely to be sought from landlords at other sites.

A spokesman for the company confirmed that executives were “looking at options to accelerate” planned store closures, adding: “The UK retail trading environment is tough and we are continuing to look at options to reduce our overall costs as we restructure the business in the UK and internationally. We have made no secret of the fact that we have steadily reduced our store portfolio in recent years and shall continue to do so as leases expire.”

High street retailers continue to struggle

The company – which operates both the Monsoon and Accessorize chains – is the latest of many high street retailers to pursue a CVA. The insolvency procedure has been used by numerous retailers and restaurant chains in recent months, as conditions for UK high street businesses remain difficult. Rising rent, business rates and wage costs, coupled with waning consumer confidence and significant disruption from the growing online retail market, have left physical retail businesses struggling to remain afloat.

Amongst others, retailers New Look, Debenhams and Mothercare, and restaurant chains Giraffe and Byron, have entered into CVAs recently, with the scheme helping businesses to stay operational by cutting rent costs at remaining sites and closing less profitable stores all together.

CVAs slammed as “bad practice”

However CVAs have attracted criticism for unfairly placing the burden of failed businesses on landlords. Speaking on the procedure’s rising popularity, Melanie Leech, chief executive of the British Property Federation, warned: “For some retailers, CVAs have become a tool to simply enable a tenant to walk away from its lease liabilities without tackling its wider issues. This bad practice is unfair and it must stop.”

Reacting to the news of Monsoon Accessorize’s CVA plans, affected landlords have criticised the chain’s owner Drillgreat for not investing more funds back into the business. Speaking to reporters, one shopping centre landlord called the plan “absolutely extraordinary,” urging: “There has to be some responsibility taken by some businesses that it’s not just about high rents. It’s about the fact that they have failed to take account of the monumental global changes in retail and have failed to invest in the business and in their staff.”

See my article on what CVAs are.

Are you also at risk of collapsing?

If you are struggling like the above retailers, rather than shutting down, do you realise you may have a hidden source of capital within your business waiting to be activated?

If you trade with other businesses and were often paid late then you could be entitled to significant compensation.

Under little known and underused legislation your business could be due huge amounts in compensation that you didn’t even know about.

That compensation could be the cash rescue your business needed.

How can CPA help?

CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.

We do the work, you receive the cash.

If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.

We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.

We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.

CPA is passionate about late payment

The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.

We are passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.

If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.

As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.

Under little used legislation, you are entitled to compensation for those late payments.

Now you can boost your own cash-flow.

CPA can help unearth the those hidden treasures.

We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.

Yes, CPA can help you boost your business cashflow.

Don’t et your bankers control you, contact CPA today.

Read our blog here on how to crack down on the late payment culture.

Read our blog here on how to give late payers the slap they need.

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

About CPA

The Credit Protection Association can help!

Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.

At the Credit Protection Association, we provide first class commercial credit information that can help you avoid being over extended to commercial customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your business customers.

We regularly publish lists of the latest company insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.

Companies in trouble usually have very bad bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.

If you supply to big companies like Monsoon Accessorise or small ones, help us help you identify the risks.

Why use a third party collector?

As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.

Over the years we have collected billions in overdue invoices for our customers. Whether your late invoices are owed by businesses or consumers, we can help get you paid.

Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

Keep up to date with the latest news by following us on social media:-

CPA on Linkedin

CPA on facebook

CPA on twitter

See all our latest news here!

How to overcome 25 of the most common excuses for non-payment

Discover how to improve your cashflow in 3 steps.

Read our blog – Debt collection agency

Read our Cash Flow Advice

Read about our overdue account recovery service

Read our blog – What is credit management?

Read our blog -What is a credit management company?

Read our blog -Credit Management that works!

Read our blog – How to select a debt collection agency

click to see read about our successes