Fashion group McGregor Fashion is to buy Euretco BV's clothing chain Adam Menswear for an unspecified sum.

McGregor said that the company will carry out a due diligence on the business and will enter into talks with workers' councils over the next few weeks.

The transaction is expected to be closed in the first half of February 2005.

Adam Menswear operates 45 men's fashion stores throughout the Netherlands, making an annual turnover of approximately €23 million in 2004.

McGregor operates 35 own stores and 21 franchised ones.

Euretco is the third largest non-food retail group in the Netherlands.