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 Planes go hybrid-electric in important step to greener flight
- 4 Hip hop is both racial and political, and for Iggy Azalea to suggest otherwise is insulting
- 5 Man hospitalised with pneumonia after downing eggnog at office Christmas party
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Orphan kangaroos spend Christmas without their parents
Northern Lights above Britain: Stunning Aurora Borealis illuminates Northumberland sky on Christmas Eve
New route to Mars could make manned mission much cheaper and easier
Isis 'did not shoot down Jordan war plane' before capturing pilot, says US
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...