UK: Alexon sells Style Menswear for GBP1
Retail group Alexon has sold its loss-making Style Menswear business to Hamsard 3032, just weeks after previous disposal Dolcis went into administration.
Hamsard 3032, a company backed by retail entrepreneur John Kinnaird, paid the token sum of GBP1 (US$2) for Style Menswear, with the deal closing on a cash-free, debt-free basis.
The deal comes after footwear chain Dolcis - also sold by Alexon to Hamsard for GBP2.7m in December 2006 - went into administration with the loss of nearly 500 jobs last month.
Administrator PricewaterhouseCoopers is currently considering offers for the company.
As part of the Style Menswear deal, Alexon has also placed GBP3m in an escrow account "in respect of certain contingent liabilities of Style Menswear", the company said.
The retail chain has 55 stores and 60 concessions, but in the year to 28 January 2007, it recorded an operating loss of GBP2.7m on sales of GBP54.7m. Alexon said it had gross assets of GBP13.6m and net assets of GBP7m.
In the six months to 28 July 2007, Style Menswear made a further loss of GBP2.9m.
"Style Menswear continued to perform poorly in the second half of 2007/8," said Alexon.
"This transaction allows management to concentrate on its women's wear businesses, and the board believes that this transaction is in the best interests of the Alexon Group."
Prior to his backing for Hamsard 2032, John Kinnaird had run Warner Bros Studio Stores, a business which went into administration in 2004.
Women's wear retailer Alexon Group Plc today (5 June) said trading in the first 18 weeks of the first-half is in line with expectations for both Alexon Brands and Bay Trading....
Full-year losses at UK footwear retailer Stylo Plc have widened to GBP10.3m (US$20.36m), from a loss of GBP6.7m last year, in what the group describes as a "difficult" environment for footwear chains....
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