Monsoon Accessorize has confirmed this morning that it has entered into administration and is said to be putting around 545 jobs at risk.
The high street fashion retailer has also announced the permanent closure of 35 branches across the UK.
The company is the latest chain to suffer amid the coronavirus (COVID-19) pandemic and was understood to be trading profitably before lockdown.
The chain currently operates around 220 stores across the country with several outlets in Greater Manchester.
A deal has reportedly been agreed to save the majority of the chain’s outlets.
The deal will transfer around 450 jobs to Adena Brands, owned by Monsoon Accessorize founder Peter Simon, which has promised to inject £15 million into the business to allow the remaining stores to stay open. Mr Simon will now try to renegotiate with landlords to get a better deal on the remaining 162 store leases.
Tony Wright, joint administrator and partner at FRP, said: “We had to move quickly and decisively to secure the future of Monsoon and Accessorize, as many jobs as possible and the presence of these two iconic brands on the UK high street.”
“After assessing a range of options this deal achieves those goals with least disruption to the business in an already challenging retail environment. We are now committed to working with Adena Brands as they enter talks with landlords to agree future terms across their store portfolio and look to transfer more jobs to the buyer.”
“We’ll also be working with the Redundancy Payments Service to support all affected employees through this difficult time.”
It has not yet been confirmed which stores are to close permenantly.
More to follow.