125 stores at risk as Moss Bros drafts in KPMG advisers

Moss Bros restructuring KPMG CVA
Moss Bros had been in talks with landlords to switch its rents to turnover
// 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.


READ MORE:


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.

Click here to sign up to Retail Gazette’s free daily email newsletter

1 COMMENT

  1. Retailers are suffering. Online business is still accelerating. If there is to be a return to form for High St retailers (quite aside from the Covid 19 aspects) there must be an emphasis on service. Something to elevate the shopping experience. A sea-change in outlook and attitude.
    Kirit Pankhania
    CEO The Knowledge Corporation Ltd

LEAVE A REPLY

Please enter your comment!
Please enter your name here