Moss Bros, the renowned formal menswear label from the UK, has announced the launch of company voluntary arrangement (CVA) to revamp its fixed cost base.
The announcement hasn’t actually come as a surprise considering the retailer was heavily impacted by store closures, cancellation of weddings and reduced demand for officewear.
The 169-year-old retailer is known for specialising in dress wear for formal occasion – and that’s where it has been hit the most.
Moss Bros has hired auditing firm KPMG to counsel on a possible CVA with the intent to switch to turnover-based rents. However, things haven’t been working on that front!
Brian Brick, CEO, Moss Bros, said that after the stores reopened following the first lockdown, footfall was very low and sales were hit badly.
He added that ever since the country went into another lockdown – and with the future still looking uncertain – Moss Bros has been trying to limit the fixed costs and therefore has taken the tough decision to undertake a CVA so as to safeguard the future of its business and people.
Details of CVA haven’t been provided as yet.
Earlier this year, Moss Bros was bought by Crew Clothing owner Brigadier for £22.6 million. It currently runs more than 120 stores all across the UK.
Stay tuned for more details!