// Moss Bros CVA proposal approved by 80% of its creditors
// Full details of the CVA have not been provided – especially around whether it would impact its 800 staff
// CVA comes less than a year after Brigadier Acquisition acquired Moss Bros for £22.6m
Creditors have voted in favour of approving major restructuring plans put forward by formal menswear retailer Moss Bros.
Last month the high street chain revealed plans to launch a CVA in a bid to secure rent reductions.
On Tuesday, Moss Bros said more than 80 per cent of its creditors – including landlords – voted in favour of the proposal, surpassing the 75 per cent threshold required to pass the move.
READ MORE:
- Moss Bros unveils CVA proposal
- Moss Bros chair Colin Porter exits as the retailer goes private
- Moss Bros to offer private appointments in stores from Monday
However, no further details of the CVA have been provided as yet – including whether it would impact jobs.
Moss Bros, which was impacted by closures, wedding cancellations and decreased demand for office clothing, operates 128 retail stores and employs about 800 staff.
Chief executive Brian Brick said the approval of the CVA would allow the retailer to “reset” its cost base and “emerge from the pandemic on a sure financial footing”.
The CVA comes less than six months after the finalisation of a deal that saw Brigadier Acquisition Company – a group of private investors led by Crew Clothing owner Menoshi Shina – buy Moss Bros for £22.6 million and take the retailer off the stock market.
The board of Moss Bros, which resigned in July after the acquisition was completed, had initially agreed to the terms of a cash offer of 22p per share by Brigadier back in March.
At one point the Takeover Panel had to step in and stop Brigadier from pulling out of the agreement as it was made just weeks before the Covid-19 pandemic escalated.
“We are incredibly grateful to our landlords and suppliers for their support in this process and proud of our employees for the way they have dealt with all that 2020 has thrown at them,” Brick said.
“We also recognise the backing of our new shareholders throughout the challenges of the takeover, pandemic and CVA process.
“We look forward to continuing to evolve our brand and ranges to serve all our customers, old and new, just as we have for so many years.”
Moss Bros had hired auditing firm KPMG to advise on a possible restructure in September.
KPMG head of regional restructuring Will Wright said: “The passing of the CVA provides Moss Bros with a solid footing upon which it can continue to navigate through this period of extreme uncertainty.”
with PA Wires
Click here to sign up to Retail Gazette’s free daily email newsletter
