// Monsoon Accessorize is facing a legal battle from British Land over its restructuring plans
// British Land, which owns the Meadowhall shopping centre, filed a bid to block Monsoon’s CVA
// The restructuring will result in Monsoon’s rents being cut by around 25% to 65%
FTSE 100 property company British Land is aiming to derail the rescue restructuring of Monsoon Accessorize.
British Land, which owns the Meadowhall shopping centre in Sheffield, filed a bid to block Monsoon Accessorize’s CVA following creditors’ approval in July, Sky News reported.
The restructuring will result in the retailer’s rents being cut by around 25 per cent to 65 per cent across just over half of its 258 store-portfolio in the UK.
Monsoon Accessorize said the restructuring plans would not result in any store closures.
British Land owns just five of Monsoon Accessorize’s shops, but has reportedly been riled up by the CVA proposals.
It voted against the CVA that was backed by over 90 per cent of creditors.
However, it felt it had little choice but to launch a legal challenge.
British Land also felt that founder Peter Simon had failed to listen to concerns expressed by landlords about the terms of other CVAs.
Meanwhile, city sources told Sky News that there was “a realistic chance” of the CVA challenge being settled before it reached court.
Last month, Monsoon Accessorize chief executive Paul Allen announced his resignation.
He had been at the helm of the fashion retailer since 2013.
Click here to sign up to Retail Gazette’s free daily email newsletter
So at last a landlord has stuck his head above the parapet, and said enough is enough, you go to court and justify your CVA
Ultimately high st rents will have to reflect their value to the retailer not the historical ability of landlords to ratchet up rents despite market conditions . They will see that the idea of ever increasing returns was a pipe dream and will have to start looking at new ways of exploiting their assets now that retail is in freefall
It’s about time these landlords got there comupence