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Fashion retailer Crew Clothing is to acquire Moss Bros in a £22.6m deal to take the company private.
Under the terms of the acquisition, each Moss Bros Shareholder will be entitled to receive 22 pence in cash per Moss Bros Share, and the deal is expected to complete in Q2 2020.
Brigadier Acquisition Company, also known as Bidco, is controlled by Menoshi Shina, which is the owner of Crew Clothing.
Menoshi Shina, director of Bidco, said: “We are delighted that the directors are recommending our offer to acquire the business, as we greatly admire the heritage and 169 year history of Moss Bros and the quality and determination of its existing management team.
“We believe that Moss Bros can have a bright future in the private arena and are excited to contribute our expertise and assist in delivering the current strategy.” He added: “We see the Acquisition as an opportunity to partner with an excellent management team to improve Moss Bros’ financial performance and protect its heritage, brand and presence on the UK high street.”
It comes after Moss Bros reported a 3% decrease in total sales for the 24-week period ended 11 January 2020.
Hire sales, which accounted for just under 8% of group revenue in the period, slumped by 17.7% on a like-for-like basis.
Additionally, total retail sales, including e-commerce and wholesale, comprised over 92% of group revenue during the period, despite being 1.6% lower than last year.
Online sales from its own website and other online marketplaces for the period were down 0.4% on last year. However, online sales comprised 17% of group revenue during the period, up from 16.6% last year.
