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 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 2 Why this father didn’t hide his daughter’s heroin overdose in her obituary
- 3 Smartphones are making children borderline autistic, says psychiatrist
- 4 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
Nepal earthquake in pictures: Photos show devastation caused by 7.8 magnitude earthquake
Nepal earthquake: More than 1,100 killed across four countries and in Mount Everest avalanche
Royal baby: Live updates as the wait continues for Duchess of Cambridge's second child
Hermann Goering's daughter fails to reclaim items looted by Nazi deputy during WWII
Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...