Troubled Alexon calls in KPMG

Click to follow
The Independent Online

The embattled fashion group Alexon has appointed a restructuring team from KPMG to help it to turn around its dire performance.

Alexon, which owns the Kaliko, Ann Harvey and Eastex brands, confirmed it had hired the accountrancy firm last night, as it considers a range of options to put it on a firmer financial footing. This followed its warning on Monday that it expects full-year profits to be "well below" previous expectations. KPMG declined to comment.

Alexon – which has 78 shops and 1,071 concessions – also said on Monday that it had received takeover offers, as it "continues to actively explore a number of options for a more appropriate capital structure".

An Alexon spokesman said yesterday: "Since our announcement on Monday we have received a lot of interest. The board has appointed KPMG to work through this interest with the directors and Investec [its corporate broker] to ensure that the best outcome is achieved."

Alexon has been struggling for a number of years and in January warned on profits for the second time in just over a month. It carried out an £18.5m rights issue in 2010 and put its Bay Trading subsidiary into administration in 2009. Its shares closed at just 3.75p yesterday.

Comments