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Alexon appoints KPMG to aid possible restructuring


Women’s fashion specialist Alexon Group has today confirmed the appointment of accountancy firm KPMG to manage the interest garnered following this week’s announcement of takeover offers, as the group looks to restructure its financial options.

On Monday the retailer announced that, while no formal offer has been made, it is in discussions with a number of interested parties over the sale of capital in the company.

Tough trading conditions have continued to damage Alexon’s financial results, as sales for the first half of its financial year dropped eight per cent in total and grew just 0.7 per cent on a like-for-like (LFL) basis.

A statement from the company at the time said: “Having undertaken a re-forecasting exercise, the board now expects the group’s performance for the year to be well below its previous expectations.”

It is expected that the positive online progress that the group has made will diminish the possibility of any of its brands being forced into administration, as was the case with its Bay Trading subsidiary which entered administration in 2009.

Slow trading in August will however, do little to reduce fears over this prospect, as the first three weeks of that month saw trading down nine per cent year-on-year LFL.

The struggling retailer owns a total of six brands, including Kaliko, Ann Harvey and Eastex and has over 990 stores across the UK and Europe.

Following a recovery after a slump in Christmas sales, the group re-fitted a large percentage of stores and has suggested that a number of new business opportunities are possible for early next year.

An Alexon spokesperson confirmed the appointment of KPMG, saying: “Since our announcement on Monday we have received a lot of interest.

“The board has appointed KPMG to work through this interest, in addition to pre-existing discussions, with the directors and Investec to ensure that the best outcome is achieved.”

Published on Friday 09 September by Editorial Assistant

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