Bagir claims a 12.5% share of the UK market for mens formalwear

Bagir claims a 12.5% share of the UK market for men's formalwear

Suit maker Bagir Group Ltd plans to pay down its debt and invest in its Ethiopian production facility after raising GBP20m (US$33.4m) in an IPO on London's Alternative Investment Market (AIM) earlier this month.

The formalwear tailoring specialist, which supplies department stores and private label retailers including Marks & Spencer and Arcadia Group, issued 71% of its share capital in the placing, and says it will use the net proceeds to repay US$9.0m in bank loans and US$7.0m in invoice factoring credit.

The rest of the proceeds will be used to provide working capital to support the group's strategy, its Ethiopian production facility, and its IT and R&D departments.

Joining the AIM "marks an important milestone in the group's 52 year history," says Bagir chief executive Danny Taragan.

Bagir supplies men's wear private label brands, women's wear private label brands, corporate wear and company own brands, offering a full service that includes fabric and trim sourcing, product technology and innovation, and design and development.

Most garments are manufactured at subcontracted factories in China, Jordan, Myanmar, Vietnam and Romania, where quality is controlled by Bagir. The company has a joint venture (Metco) in an Egyptian factory.

The group also licenses brands including Simon Carter, Peckham Rye, Austin Reed's AR Red and Jay Godfrey.

For the year ended 31 December 2013, the company sold over 3m items of clothing globally, and generated EBITDA (before exceptional items) of US$6.1m on revenue of US$99.5m.

Bagir, which is incorporated in Israel and has its main operations in the UK, the US and Israel, claims a UK market share (by value of items sold) of more than 12.5%, making it a key participant in the men's formalwear market.