Suit retailer Moss Bros has today announced that it has sold its Hugo Boss franchised stores in a deal worth £16.5 million.
Hugo Boss UK will take control of the outlets from April 1st as part of Moss Bros’ strategy to focus its resources on its own brands.
Brian Brick, CEO of Moss Bros, said: “Having restored the quality of the product offering of the core Moss Bros business and established a strong momentum in positive like-for-like (LFL) sales, this transaction will give us the opportunity to focus exclusively on investing and developing the brands which we own, from a position of operational and financial strength.
“There is significant untapped potential in our position as the UK’s number one branded suit specialist, with our unique offering of hire, strength in retail and innovation in new areas such as Moss Bespoke.”
Completion of the deal, which will involve a payment of £4.2 million in cash upfront and the remaining £12.3 million delivered in instalments, is subject to shareholder approval at a general meeting expected to be held at the end of this month.
Christmas trading continued well over the important Christmas period with LFL sales up seven per cent in the 26 weeks to January 26th and up 9.1 per cent for the full-year period to this date.
Full-year results for Moss Bros will be published on March 30th with margins reported to be strong and the company confident about the near future.
Brick added: “Although we are ever mindful of the fragile trading conditions in the UK, we have a great product offering, a focused business model and, following the disposal, will have the financial flexibility to leverage the attractive niche which we have as the UK’s number one branded suit specialist.”