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Irish arm of Monsoon Accessorize applies for examinership

The chain says attempts to renegotiate its commercial leases have been unsuccessful, but that it’s ‘business as usual’ for now.

Image: Clive Gee/PA Wire

THE COMPANY behind the Irish outlets of Monsoon and Accessorize has applied to the High Court to enter examinership.

The firm, Monsoon Accessorize Ireland Limited (MAIL), has applied to have Declan McDonald of PWC appointed to take charge of the company.

In a statement the firm said the application was “necessary and unavoidable” for the Irish stores.

Examinership allows the firm to construct a business plan which could rescue the firm, without the risk of facing a court petition asking to have the company wound up for unpaid bills.

MAIL said it had been “loss-making for some time”, as a result of the currently financial climate and the cost of renting its retail outlets.

“Earlier this month the company attempted to negotiate a reduction in the cost of its leases with its landlords to place the business on a strong financial footing but it was unable to reach an agreement that satisfied all parties,” it said.

The firm said it would be ‘business as usual’ at its Irish outlets while McDonald looked at options to revitalise the business, and expressed its wish to prioritise the needs of its staff “who continue to serve the business loyally”.

Gift cards and credit notes will continue to be honoured during the process.

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Monsoon Accessorize’s retail director Gail Ford-Hills said the court’s approval would allow the firm to come up with “the best possible solution to strengthen MAIL and secure its position in the Republic of Ireland for years to come”.

The firm has operated in Ireland since 1995, and said it remained “wholly committed” to continuing its operations here, but could not commit to doing so for an indefinite period while it continued to make losses.

The company’s last Irish accounts showed a post-tax loss of €2.1 million, and a total Irish workforce of 163.

About the author:

Gavan Reilly

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