Monsoon almost collapsed in 2020
(Picture: Handout )Fashion retailer Monsoon has bounced back from near-collapse during the pandemic with higher sales and a revitalised store expansion plan as it approaches its 50th anniversary.
Monsoon, along with sister brands Accessorize and East, fell into administration in June 2020, blaming the impact of Covid-19 and associated lockdowns for making the business unviable.
But it was quickly bought by founder Peter Simon via a pre-pack administration deal, who made sweeping job cuts and store closures before implementing a transformation plan.
Now, annual accounts for holding company Adena Brands showed that group sales rose 43% to £258 million in the year to 31 August, boosted by a 24% growth in the company’s international business. EBITDA was £24.4 million, an increase of 132%.
Despite reports that the high street is in crisis, sales at physical stores grew 105%, mostly thanks to the high number of Accessorize stores the company has in airports and railway stations.
The brand opened 19 new UK stores during the year, and plans 22 more for the coming 12 months as a result.
Online sales now represent around 45% of the group’s overall UK sales.
Market stall trader Simon opened the first Monsoon store in Beauchamp Place, London, in 1973 after being inspired by the colour and local fashion of India, Turkey, Iran and Afghanistan during a road trip.
His most recent intervention has consisted of five elements: product and brand renewal, digital transformation, retail portfolio renewal, international expansion, and continued central cost control.
Growth in the next 12 months will focus on digital, new retail locations and international expansion, the company said.
In particular, the brands will open more widely in Europe and the Middle East, including in airports in Italy, Germany and Switzerland.
CEO Nick Stowe said: “This past year we’ve made continued strong progress on our turnaround plan, moving from the earlier restructuring phase to a focus on growth.”
He said Accessorize in particular had performed “tremendously” with a return to form as travellers began to use major airports in higher numbers again.
“We’re entering a clearly more challenging consumer environment as the economy slows, and we’re taking action to control our costs and capital spend,” he added.
“But the business now has a great foundation.”
