Menswear retailer, Moss Bros has announced the launch of a CVA proposal, as the company has been “severely impacted” by the ongoing pandemic.
Founded in 1851, the retailer – which sells formal menswear and suits – operates from 128 stores and employs around 800 staff.
Moss Bros said its sub-sector of the market has been one of the hardest hit areas of the retail sector, given the cancellation of events such as weddings, school proms and occasions including Royal Ascot.
“With the likelihood of future trading continuing to be severely impacted by ongoing social distancing measures that prevent such events occurring, coupled with sustained working from home, the Company is therefore pursuing a CVA in order to restructure its fixed cost base, giving it the best chance possible of emerging from lockdown in a manner which secures the long term future of the business” the company said in a statement.
Auditing firm KPMG has been hired by Moss Bros to oversee a potential restructuring in September.
CEO of Moss Bros Brian Brick commented: ”Prior to the COVID-19 pandemic the Group was trading robustly versus last year, despite operating in a challenging business environment. At the outset of the pandemic, we managed to reduce costs and furlough staff in order to survive the first lockdown. There was then a glimmer of hope as we began to re-open some stores in the summer period, but even then trading was severely impacted, footfall was extremely low and sales were substantially down on the previous year.
“With the introduction of further lockdown measures, and with the outlook for trading remaining depressed, the Group now faces no alternative but to try and limit our fixed costs and we have therefore made the tough but essential decision to undertake a CVA in order to protect the future of our business and people.”
Mr Brick said safeguarding the business and protecting jobs remains the “primary focus”.
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