Moss Bros CVA is approved, put it on 'solid footing'
Moss Bros has been given the green light to press ahead with its major restructuring plans having gained company voluntary arrangement (CVA) approval.
The struggling UK menswear retailer, which operates 128 stores and employs around 800 staff, said more than 80% of its creditors voted in favour of the deal, ahead of the 75% required threshold, allowing the business to secure essential rent reductions.
At the time of last month’s proposed CVA, the business was looking at exiting up to 24 retail sites and shifting a number of units to a turnover-based rent model.
CEO Brian Brick said the CVA approval will allow the company to “reset its cost base" and “emerge from the pandemic on a sure financial footing".
“We are incredibly grateful to our landlords and suppliers for their support in this process and proud of our employees for the way they have dealt with all that 2020 has thrown at them", he said.
“We also recognise the backing of our new shareholders throughout the challenges of the takeover, pandemic and CVA process.
“We look forward to continuing to evolve our brand and ranges to serve all our customers, old and new, just as we have for so many years”, he added.
Will Wright, head of regional restructuring at KPMG and joint supervisor of the CVA, also said: “The passing of the CVA provides Moss Bros with a solid footing upon which it can continue to navigate through this period of extreme uncertainty.”
The retailer was hit hard on two fronts during the pandemic and subsequent lockdown periods. Menswear sales took a major hit when stay-at-home workers found there was no need to replace or update office-wear. Meanwhile, the cancellation of weddings and social events also devastated the key formalwear rental market.
In June, Moss Bros was finally acquired by Crew Clothing-linked Brigadier for £22.6 million after the Takeover Panel forced the buyer to honour an agreement to purchase the firm as the coronavirus pandemic intensified.
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