// Moss Bros turns to KPMG to handle a restructuring process
// The retailer continues to struggle with trading amid the Covid-19 pandemic
Moss Bros is reportedly undergoing a restructuring process after its sales continued to be affected by the cancellation of Royal Ascot and the implementation of banning large weddings.
The menswear retailer has drafted in advisers from KPMG to consider a CVA, which would result in the closure of some of its stores while also reducing rents on others, The Times reported.
Moss Bros had been in talks with landlords to switch its rents to turnover but it is understood the negotiations had not succeeded.
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Moss Bros has 125 stores across the UK and employs around 1000 people.
The company was acquired by Crew Clothing owner Menoshi “Michael” Shina for £22 million on March 12, less than two weeks before all non-essential retailers were ordered to close.
However, Shina unsuccessfully attempted to retract the deal.
The deal will also see Moss Bros taken private and the acquisition is expected to be completed in the second quarter of 2020.
The board of Moss Bros had agreed to the terms of a cash offer of 22p per share by Brigadier Acquisition Company back in March.
As the acquiring parent company already has a board, the Moss Bros board is being dismantled.
Last month, Moss Bros saw its non-executive chairman Colin Porter step down, along with several other directors as it transitioned to a private company.
Senior independent non-executive director Alex Gersh, and non-executive directors Gareth Jones, Maurice Helfgott, and Avis Darzins, all stepped down from the business.
Moss Bros chief executive Brian Brick and chief financial officer Bill Adams will remain on the parent company board.
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