ANALYSIS: Does the sale of TM Lewin signal the return of smart attire?

Joint administrators Will Wright and Chris Pole from Interpath Advisory announced the sale of British menswear retailer, TM Lewin, on 8 April, however GlobalData's associate apparel analyst Louise Deglise-Favre tells Just Style the new owner will have a challenge on their hands to make it relevant to what's on-trend right now. She is keen to highlight, however, the brand is seen as a British institution as it was founded over 120 years ago in London and is one of the UK’s most famous tailoring and menswear brands. While, Will Wright, head of Restructuring at Interpath Advisory and joint administrator explains the sale took place following a great deal of interest. He says: “We’re pleased to have achieved this sale which secures the future of this famous British retail brand." He adds: “We understand the new owners will be relaunching the online trading platform over the coming weeks and, in the longer term, are considering the possibility of opening new high street stores. We wish them all the best for the future.” Deglise-Favre warns any move back into bricks-and-mortar stores "would need to be very calculated." She suggests the brand should keep its focus online with perhaps one flagship store in a key location before opening up more stores. She also explains that "even for those who are going to the office everyday, work attire has relaxed quite a lot since the pandemic," and adds the new owner will have to adapt TM Lewin's product offering if they want to get it off the ground again. Deglise-Favre does point out that as "we've seen so much casual wear and loungewear for two years, it will be natural to see a resurgence in tailored cuts and high heels". She is quick to note however that overall apparel is going to remain quite casual. She explains that one of TM Lewin's main competitors in the UK, Charles Tyrwhitt, has been doing "quite well" despite difficulties with lockdowns during the pandemic. But, she believes the company's success is due to the company expanding its offering to include more casual wear options. Why does TM Lewin need to adapt to the new casual smart attire trend Deglise-Favre believes it's essential for TM Lewin to take into account how the workplace uniform has changed and cites Charles Tyrwhitt as a good example of how to cater for the new type of men's workwear. She says: "TM Lewin should also introduce some elements of loungewear, create some impactful campaigns and work on its overall brand image. It will be a lot of investment so it will depend on what the new owner wants to achieve and how much they want to spend on it." Prior to the pandemic, TM Lewin had grown to operate more than 150 shops worldwide, but after the initial impact of Covid and lockdown restrictions prompted it to enter an insolvency process, it moved to an online-only model trading exclusively in the UK in the summer of 2020. In May 2020, TM Lewin was acquired by Torque Brands, a special purpose acquisition vehicle set up by London-based consumer specialist, SCP Private Equity. Torque Brands said it was set on acquiring a portfolio of complementary British brands, with the aim is to establish a portfolio of five to eight brands over the next 12-18 months, which will be integrated into one common shared services platform. At the time TM Lewin operated a global business with sales of more than GBP120m (US$157.8m) in FY20, with online sales amounting to more than 30% of the group’s revenues in 2019. However, TM Lewin has been on a rocky rollercoaster ever since and only last month it was announced the company had gone into administration for a second time with Will Wright and Chris Pole from Interpath Advisory being appointed joint administrators. In a statement issued last month, Wright, head of restructuring at Interpath Advisory and joint administrator said: “Over the course of the pandemic, men’s apparel – and formalwear in particular – has been one of the hardest-hit parts of the retail sector, as work-from-home measures and restrictions on events meant demand for suits and formal tailoring waned.”