It wasn’t good news for fans of accessories shop Monsoon Accessories in Ireland today. The company revealed that it had been making losses for some time and had applied to the High Court to appoint PwC examiner Declan McDonald.
Like many retailers in Ireland, Monsoon Accessorize have struggled with the poor economic climate in the country since the fall of the Celtic Tiger. Rents remain high and talks with landlords earlier this month to negotiate a reduction in costs failed.
Gail Ford-Hills, retail director for Monsoon Accessorize Ireland Limited for Britain and Ireland, said: “We very much regret having to take this course of action, but after our negotiations with landlords failed to deliver a workable proposal we realised we had no option given the on-going level of losses in the business.”
Examinership is a rescue process designed to help businesses recover from insolvency. It was introduced in 1990 to allow a company that is experiencing financial difficulties a period of protection from creditor action during which a third party (usually an accountant) has an opportunity to examine the affairs of the company and, if there is a reasonable prospect of the survival of the company, to formulate proposals to facilitate such a survival.
Monsoon Accessorize has operated in Ireland for over 18 years and currently has 20 stores around the country with 270 members of staff.The retailer will reportedly continue to honour gift cards and credit notes.