(Alliance News) - Men's formal-wear firm Moss Bros Group PLC has agreed a takeover by the owner of casual-wear retailer Crew Clothing, the companies said on Thursday.
The acquisition is by Brigadier Acquisition Co Ltd, which is majority-owned by Regiment Acquisition Co Ltd, in turn majority-owned by Menoshi Shina, also known as Michael Shina, who owns Crew Clothing, a UK casual-wear retailer.
The purchasing firm, Brigadier Acquisition, is minority owned by a company jointly owned and controlled by Anna Kentros, Grace Hutcher, and David Shalleck-Klein. These three, Moss Bros said, all have "strong connections" with the global apparel sector via members of their families and "other connected parties".
Brigadier Acquisition will be paying 22 pence per share for Moss Bros, which is a 61% premium to London-headquartered Moss Bros' closing price of 13.7p in London on Wednesday.
Shares were 51% higher Thursday morning at 20.70p, meaning a 15% decline over the past 12 months. However, they traded above 100p for a sustained period in 2017.
The 22p agreed price values Moss Bros at approximately GBP22.6 million.
Moss Bros Chair Colin Porter commented: "In September, the board of Moss Bros set out its strategy to drive Moss Bros' long-term performance and we have seen some early positive results which support the board's confidence in Moss Bros as a standalone entity.
"However, the board is also aware of the risks attached to executing this strategy in the current retail operating environment and as a publicly-listed company. Having considered a range of strategic options, the board believes that the terms of the acquisition, which offers a premium cash exit to Moss Bros' shareholders, fairly reflect the value of Moss Bros and its prospects, taking account of these risks."
Moss Bros began a strategy review in 2018 amid a general downturn for UK retailers. In its most recent trading update, for the 24-weeks from July 28 to January 11, Moss Bros said it made "good" progress.
The retail gross margin had improved, the company said, with sales down 3.0% and like-for-like sales down 3.2%.
It did, however, still say it saw a tough year ahead amid the continued dampening of consumer confidence in the UK, hitting the high street hard.
By George Collard; georgecollard@alliancenews.com
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