Moss Bros landlords approve retailer’s rescue plan
Landlords have approved Moss Bros restructuring proposals as the menswear retailer aims to reduce costs due to the impact of the coronavirus pandemic.
The high street store’s creditors gave the company voluntary arrangement proposals the green light today, after the plan was launched on 27 November.
Moss Bros has not announced whether the proposals could lead to the closure of some of its 128 UK stores or whether any retail jobs will be affected.
However Moss Bros chief executive Brian Bick said the CVA will allow the retailer to “reset the cost base of the business and to emerge from the pandemic on a sure financial footing”.
“We are incredibly grateful to our landlords and suppliers for their support in this process and proud of our employees for the way they have dealt with all that 2020 has thrown at them,” Bick said.
“We also recognise the backing of our new shareholders throughout the challenges of the takeover, pandemic and CVA process. We look forward to continuing to evolve our brand and ranges to serve all our customers, old and new, just as we have for so many years.”
More than 80 per cent of voting creditors – including the majority of landlords – voted to pass the proposals.
Will Wright, head of regional restructuring at KPMG and joint supervisor of the CVA, added: “The passing of the CVA provides Moss Bros with a solid footing upon which it can continue to navigate through this period of extreme uncertainty.”
Moss Bros has been hit by the lockdown measures implemented by the government in response to the coronavirus crisis.
The company said its particular niche – men’s formalwear – had been particularly impacted due to the cancellation of mass gatherings such as weddings, proms and sporting events such as the Royal Ascot.