Sky News has reported that a quartet of Monsoon's landlords have launched a pre-emptive strike to an anticipated CVA. It is claimed that in a letter to Monsoon's owner, Peter Simon, the landlords of a significant number of Monsoon Accessorize's stores have demanded a shareholding in Monsoon in exchange for significant rent reductions. It is suggested that this proposal will avoid the need for a CVA. This approach is similar to the 20% stake promised by the Arcadia Group to landlords should they support a CVA next week.
As CVA's have been historically unpopular with landlords, will this change in tact become the norm going forward?
The tactic underlines the influence landlords have as retailers become increasingly desperate to reduce their cost-bases, and the frustration in the commercial property industry at the deluge of CVAs unveiled in the last two years.