Adena Brands Ltd, a Company ultimately controlled by Peter Simon, is pleased to announce that it has acquired both Monsoon and Accessorize in a transaction that is intended to save both of the iconic brands and as many as 2,300 jobs.
Monsoon and Accessorize went into administration last night after the impact of COVID-19 and the subsequent lockdown and effects of the closure of all their 230 shops since mid-March made their businesses unviable.
Following a sale process instigated by FRP Advisory, the administrator, Adena has acquired both businesses to ensure they continue to trade. The terms of the deal include a cash injection of up to £15 million by Peter Simon, in addition to the £12 million he invested in the business at the time of its successful Creditors’ Voluntary Arrangement (CVA) 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, Northamptonshire. In all the deal secures up to 2,300 jobs while both Monsoon’s and Accessorize’s online operations will continue to serve customers without a pause.
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, ensuring that Monsoon and Accessorize will continue to have a significant presence on the British high street.
Peter Simon said: “I am delighted to be able to agree terms for this buyout of Monsoon and Accessorize with FRP Advisory. 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.”
