This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-12380784
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Moss Bros to sell Hugo Boss stores | Moss Bros to sell Hugo Boss stores |
(40 minutes later) | |
Shares in High Street menswear retailer Moss Bros surged more than 14% after the company announced its was selling its 15 Hugo Boss stores. | |
Moss Bros will sell the stores back to Hugo Boss for £16.5m, ending a 16-year franchise deal. | Moss Bros will sell the stores back to Hugo Boss for £16.5m, ending a 16-year franchise deal. |
Brian Brick, Moss Bros chief executive, called the deal "transformational". | Brian Brick, Moss Bros chief executive, called the deal "transformational". |
The group, which has 155 stores in the UK, said in a statement that trading held up well during the Christmas period despite the bad weather. | The group, which has 155 stores in the UK, said in a statement that trading held up well during the Christmas period despite the bad weather. |
Like-for-like sales rose 7% in the 26 weeks to 29 January - a slight slowdown on the 8.3% reported in early December. | Like-for-like sales rose 7% in the 26 weeks to 29 January - a slight slowdown on the 8.3% reported in early December. |
Moss Bros said it wants to use the Hugo Boss money to revamp core stores and finance new initiatives, such as the roll out of its Moss Bespoke tailoring service. | Moss Bros said it wants to use the Hugo Boss money to revamp core stores and finance new initiatives, such as the roll out of its Moss Bespoke tailoring service. |
Moss Bros, formed in 1851 and which also trades as Savoy Taylors Guild and Cecil Gee, has operated Hugo Boss stores under franchise since 1995. | Moss Bros, formed in 1851 and which also trades as Savoy Taylors Guild and Cecil Gee, has operated Hugo Boss stores under franchise since 1995. |
"This is a transformational deal for Moss Bros and absolutely in line with our recently developed strategy of focusing on growing our own brands," said Mr Brick. | "This is a transformational deal for Moss Bros and absolutely in line with our recently developed strategy of focusing on growing our own brands," said Mr Brick. |
"It [the sale] makes the business much more simple for us to develop, and in today's world, having that amount of cash on your balance sheet is pretty handy," he added. | |
Moss Bros shares rose 14.7% to 27.25p in morning trading. | |
Andrew Wade, analyst at Numis, said the sale was a good move. | |
"We believe management is continuing to make the right moves strategically and operationally," he said. | |
After the sale completes on 1 April, Hugo Boss will directly control 35 outlets. The acquisition includes the flagship Regent Street store in central London. |
Previous version
1
Next version