UK: Moss Bros sells back Hugo Boss franchises
Moss Bros is turning its focus to own brand stores
Hugo Boss will acquire the business and assets as a going concern, with completion of the disposal to take place on 1 April 2011, subject to shareholder approval.
Moss Bros said the transaction was integral to its strategy to focus growth and resources on the company's own brands
Moss Bros also confirmed today (7 February) that its like-for-like sales were up 7.0% for the 26 weeks to 29 January 2011, and up 9.1% for the 52 weeks to 29 January 2011.
It continues a recent uptick in Moss Bros' performance, after narrowing losses in the first half of its financial year.
"This is a transformational deal for Moss Bros and absolutely in line with our recently developed strategy of focusing on growing our own brands," said Brian Brick, chief executive officer of Moss Bros. "Although we are ever mindful of the fragile trading conditions in the UK, we have a great product offering, a focused business model and, following the disposal, will have the financial flexibility to leverage the attractive niche which we have as the UK's number 1 branded suit specialist."
Moss Bros will continue to sell Hugo Boss branded clothing through its Moss and Cecil Gee fascias.
Claus-Dietrich Lahrs, CEO and chairman of the managing board at Hugo Boss, said: "This transaction works well for both of our companies. The acquisition is a central component of our global growth strategy and at the same time allows Moss Bros to focus its investment on its own brands."
Meanwhile, market analysts Verdict said that the sale was a "very good move for Moss Bros".
Maureen Hinton, practice leader at Verdict, told just-style: "For Hugo Boss it gives greater control over its brand – a strategy many luxury brands have been pursuing for some time, with very positive results."
Help test our new apparel sourcing tool.
German fashion house Hugo Boss has raised its annual forecasts after soaring sales around the world helped it to the "strongest" first-half in the group's history....
German fashion retailer Hugo Boss AG has raised its full-year sales and earnings forecast after booking a five-fold hike in second quarter profit, helped by strong demand in China and the US....
German fashion retailer Tom Tailor Holding AG has promoted Dr Marc Schumacher to its management board and tasked him with overseeing the group's retail activities....
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....
Suit retailer Moss Bros says its profit has grown 9.8% during the past quarter, but that is remains mindful of the macro-economic environment and its impact on consumer spending. ...
- China leads US apparel sources with falling prices
- Hard hit Turkish industry is not knocked out
- "Power of the many" drives change at Otto Group
- Vietnam grows share of US apparel imports in 2016
- US apparel sector braces for potential cost hikes
- US Q4 in brief – Foot Locker, Nordstrom, Carter's
- Bangladesh crackdown has cost garment sector $100m
- Adidas and Burberry recognised for sustainability
- Inditex and H&M boycott Dhaka Apparel Summit
- Macy's will "do the right thing", says Lundgren
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022