Four property giants have reportedly offered to support a financial restructuring at troubled fashion retailer Monsoon Accessorize - but only if it gives them an equity stake in the firm.
British Land, Hammerson, M&G Investments and Roubaix Group have teamed up to drive a better bargain from a proposed deal with Peter Simon, who owns the retailer, Sky News reports. The firms are thought to own a significant number of Monsoon Accessorize’s 270 stores.
They reportedly wrote to Simon this week, demanding a cut in his business if they agree to reduce rents, rather than reducing them through an insolvency procedure called a Company Voluntary Arrangement (CVA).
The calls come at the same time as Sir Philip Green, who owns Topshop, battles with property owners in a bid to save his Arcadia Group. He has promised firms a 20 per cent stake in the firm if they support a CVA next week.
Sources close to Monsoon’s landlords told Sky news any stake in the firm would be distributed among all of its landlords, not just the four who have written to Simon. The demands illustrate the growing clout landlords have over retailers, who have become increasingly desperate to cut costs as footfall on the high street fails them.
One source told the broadcaster that they had confidence in Simon's strategy after a restructuring is completed.
“The landlords believe the business has a future, otherwise they would not be interested in taking equity,” the source said.