M&S shake-up may lead to sale of US interests
Monday 22 February 1999
However, the possibility of a sale in the next few months has not been ruled out as M&S attempts to consolidate its business after a dramatic fall in profits over the last year.
"We absolutely deny we are in the process of selling Brooks Brothers and Kings but no area of the business is sacrosanct in the review," said a spokeswoman. "It could lead to anything from us opening new Brooks Brothers stores in London, through to selling off the business."
Last week the retailer's new chief executive, Peter Salsbury, told city analysts that the "potential and relevance" of the two chains would be examined. A decision on their future could be decided ahead of the announcement of the review results in June.
The acquisition of the Brooks Brothers chain in 1988 is considered one of M&S's biggest strategic mistakes.
Profits at the 191-store chain improved when it diversified from conservative menswear into women's clothing and accessories but although a combined sale of the two businesses could raise pounds 375m, that is still less than M&S paid for Brooks Brothers alone.
M&S has also dismissed speculation that it is about to call a halt to its expansion in Germany as premature, saying that it has just opened four stores there and is planning to open a further one in Frankfurt.
Retail analyst Richard Hyman of Verdict Research said the retailer's problems were not to do with a lack of capital.
"Clearly the halving of M&S profits is something the city isn't too happy about, but a sale would have little impact on its ability to refocus its business and get back to the levels of performance we are used to," he said.
- 1 Home Office says Nigerian asylum-seeker can’t be a lesbian as she’s got children
- 2 What happens to your body when you give up sugar?
- 3 Japanese island overrun with cats after population explodes
- 4 Apple and Google users being spied on for a decade because of 'Freak' security flaw
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Japanese island overrun with cats after population explodes
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
Bubonic plague-carrying fleas found on New York City rats
London property boom built on dirty money
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...