Retailer JD Sports has acquired men’s wear chain Cecil Gee, including eight of the brand’s stores, from Moss Bros for GBP1.7m (US$2.8m), the company has confirmed.

The UK company said the deal included eight of the nine existing Cecil Gee outlets, as well as the trading name and stock, adding that it intended to continue trading the stores with “an enhanced but similar premium branded fashion offer”.

JD Sports executive chairman Peter Cowgill said: “The acquisition of the Cecil Gee stores provides us with a low-risk springboard for the development of a well-funded, profitable premium brand fashion chain.”

Moss Bros said the deal was in line with its strategy of focusing on its core business, adding that the remaining Cecil Gee store in Glasgow would be converted to a new format Moss store in the next few weeks.

The company said it would use the proceeds, along with the disposal of the Hugo Boss franchised business announced earlier this year, to fund the redevelopment of its Moss branded stores, along with other investments.

Moss Bros said it was continuing to trade “well”, with like-for-like sales excluding Cecil Gee up 13.4% for the 20 weeks to 18 June, and gross margin ahead of last year.

The company added: “With the disposal of Cecil Gee secured, and the strong trading performance to date, the board, although mindful of the fragile external trading environment and the importance of Christmas trading to the full year results, nonetheless anticipates that the out-turn for the full year will be ahead of current market forecasts.”