Coats Viyella seeks buyer for struggling clothing supplier
Thursday 18 December 1997
Coats Viyella is seeking buyers for Counterpart, the troubled Bhs and Next clothing supplier which plunged pounds 8m into the red this year. If it cannot find a buyer in the next few months seven factories in the Midlands and Scotland, which together with back office functions, employ 1,100 people, will have to be closed.
Coats Viyella is also splitting itself in two in an effort to reverse the decline in its share price. Its M&S clothing business, the Jaeger and Viyella retail chains and its home furnishings operation will be spun off into a new quoted company called Coats. The remaining Viyella group will house its thread and precision engineering divisions. There are also plans to create a three-way split with a demerger of the engineering business awaiting approval from the US tax authorities.
However the group's shares fell 15.5p to 95p as it warned that current year profits would fall up pounds 40m short of the pounds 174.3m in made in 1996. The cost of exiting Counterpart and reorganising its poorly performing Berghaus Russian wholesale business will also wipe up to pounds 45m off the bottom line.
Analysts believe the group could be forced to halve its final year dividend. Sir David Alliance said: "Because of restructuring we have lost our way. The change of management and the strength of sterling played a part. Now it is best that the three businesses stand on their own feet with focused management."
- 1 Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
- 2 Pope Francis issues top 10 tips for happiness – including don’t try to convert other people
- 3 Disney heiress Abigail disowns her share of family profits in West Bank company
- 4 The secret report that helps Israel hide facts
- 5 Israel's propaganda machine is finally starting to misfire
Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
Pope Francis issues top 10 tips for happiness – including don’t try to convert other people
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Justin Bieber posts Instagram photo of Orlando Bloom crying after Ibiza fight 'over Miranda Kerr'
Disney heiress Abigail disowns her share of family profits in West Bank company
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
- < Previous
- Next >
iJobs Money & Business
£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...
£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...
Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...