Latest ICSM Credit News: Frankie & Benny's CVA; Monsoon and Accessorize's pre-pack raises eyebrows; and another hotel goes bust

Pic: BBC

Latest ICSM Credit News: Frankie & Benny's CVA; Monsoon and Accessorize's pre-pack raises eyebrows; and another hotel goes bust

The Covid-19 shut downs are set to see more bad news for suppliers of restaurants after The Restaurant Group announced a Creditors Voluntary Agreement (CVA) in which it plans to shut 125 of its outlets.

ICSM Credit’s Ian Carrotte said the announcement was only the tip of the iceberg as more in the hospitality industry were likely to go bust or slash costs as the furlough scheme begins to end.

He said: “It’s another big hit for suppliers and staff as the TRG own the Frankie and Benny’s, Garfunkel's and Chiquito chains. Yes the Covid-19 is a major factor but those with memories will recall the group had already made major cuts in the last two years. Jamie’s Italian and other chains had all been struggling due to market saturation and changes in consumer habits.”

Writing in Big Hospitality James McAllister reported: “As a result, approximately 210 sites have been identified as either being underperforming; on unfavourable lease terms; not expected to generate future profitable returns going forward; or subject to a combination of the three. Of those sites, 125 have been identified for closure in the short term under the CVA proposal, with the balance being subject to a reduction in rental costs and revised lease terms.  The group adds that the CVA will also include a mechanism to exit approximately 25 previously closed leisure sites.”

Hotel goes bust

Also in the hospitality industry the BBC have reported on the demise of the Exchange Hotel in Cardiff. They reported: “The hotel company which owns one of Wales' most historic buildings has gone into administration. Insolvency firm Wilson Field has been appointed administrators of Signature Living Coal Exchange, which owns the Exchange Hotel in Cardiff Bay. The firm had recently secured a £2m loan from Cardiff council to renovate the Grade II*-listed Coal Exchange. The council said it had not parted with any cash and was working to get the work on the building completed. Built in 1883, the Coal Exchange was once where the world price of coal was set and where the first £1m cheque was signed. The first phase of the 173-bed Exchange Hotel opened in 2017 following a £15m refurbishment.”

Pre-pack for fashion chain

In retail Drapers have reported that Monsoon and Accessorize had been bought out of administration in a pre-pack deal by the owner Peter Simon.

“This is another case that will raise eyebrows,” said Ian Carrotte, “as Simon plans to close many of the stores retaining around 100 and shed around 1,000 jobs. The suppliers will rightfully be wondering if they have been taken for ride.”

Drapers reported that the new holding company Adena Brands controlled by Simon, acquired the fashion chain. He will get the Monsoon and Accessorize brands and intellectual property, the head office and design teams, and the group’s distribution centre in Wellingborough for a fraction of the original value of what the outfit was worth a couple of years ago. Drapers said: “The deal includes a cash injection of up to £15m by Simon, on top of the £12m he invested in the business following its company voluntary arrangement (CVA) in July last year. Adena Brands will now enter talks with the landlords of many of Monsoon and Accessorize’s stores to see if they can reach terms to reopen them when the current lockdown ends to secure further jobs. Ultimately the new group hopes to be able to save as many as 100 stores.”

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website or email Ian at on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website or send an email to

For details for the work of the journalist Harry Mottram visit

Tel 0844 854 1850 ___ Fax 01454 327 355
Privacy Policy   © ICSM All Rights Reserved