British Land challenge to Monsoon’s plans for rent cuts
The shop owner has objected to the company’s CVA.
Shopping centre owner British Land has tried to block Monsoon Accessorize’s restructuring efforts, in another showdown between struggling high street retailers and their landlords.
The property giant, which owns Meadowhall in Sheffield among other major developments, filed a bid to block the retailer’s Company Voluntary Arrangement (CVA) back in July.
It is understood that British Land, which voted against the CVA proposals, has taken issue with Monsoon’s level of transparency during the process.
According to Sky News, which first reported the story, British Land felt that Monsoon’s founder Peter Simon had failed to listen to the concerns of landlords about the terms of the CVAs.
The firm is thought to be the only challenger to the plans, and only owns five Monsoon stores.
The proposals were approved in July, giving the green light for rent reductions on 135 stores.
Monsoon has 258 stores across the country, but said that its current rent bills are “unaffordable” due to the crisis on the British high street.
This is not the first time British Land has taken a stand against the spate of CVAs which have seen swathes of high street closures and rent cuts.
It was among a group of landlords to challenge a CVA which was passed by creditors of Supercuts owner Regis last year.
British Land was also reported to be among the groups planning to challenge Sir Philip Green’s plans to whittle down his Arcadia retail empire, but was later placated after negotiations with the tycoon.
Representatives for both British Land and Monsoon Accessorize declined to comment.