Here’s another UK-based retailer that’s struggling to survive!
British menswear brand Moss Bros has been under a revamping process ever since its sales have been hit following ban of huge weddings in the UK amidst these tough times.
Add to this, cancellation of Royal Ascot too has impacted the suit seller severely.
Poor sales have now forced the British fashion retailer to consider Company Voluntary Arrangement, better known as CVA. Consequently, it has now drafted in advisers from KPMG to consider CVA.
If and when this happens, it could put 125 of all its stores in the UK at risk thereby impacting the lives of several people.
While there is a probability of some of its stores shutting down, rent could be reduced on some others.
There have been reports that the retailer had been closely negotiating with its landlords to shift to turnover-based rent, though it didn’t yield anything positive for the retailer.
Notably, Moss Bros was bought for £22 million by Crew Clothing owner Menoshi ‘Michael’ Shina on 12 March 2020, just few days prior to lockdown in the country.
The acquisition, which is expected to be completed in the second quarter of 2020, will see Moss Bros go into private ownership.
The London-based fashion retailer generates revenue of £130.2 million.