Suits us, sir. Moss Bros sells Hugo Boss stores for £16m
Tuesday 08 February 2011
The suit retailer Moss Bros hailed as "transformational" yesterday the decision to sell its 15 Hugo Boss franchise stores to the German clothing giant's UK business for £16.5m.
The British company, which operates the Moss, Savoy Taylors Guild and Cecil Gee shops, as well as its eponymous suit-hire business, said the proceeds from the deal would give it "sufficient working capital such that it will not need to renew its current banking facilities and will operate debt-free".
Moss Bros's Hugo Boss franchise made an operating profit of £700,000 for the year to 30 January. After a strategic review, the decision to sell the Hugo Boss franchise will allow it to focus on its core business, notably investing in the Moss brand and redeveloping the Moss-branded stores.
Brian Brick, the chief executive, said the deal was extremely significant, adding: "It is the transformation of the business. You only know how far you have come when you look in the rear-view mirror."
Maureen Hinton, the practice leader at Verdict, the retail consultancy, said: "This is a very good move for Moss Bros."
Despite the heavy snowfall in December, Moss Bros said its like-for-like sales for the 26 weeks to 29 January had jumped by 7 per cent.
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