Landlords approve Moss Bros CVA plans
Landlords have given the green light to formal menswear retailer Moss Bros’ major restructuring plans.
The high street chain revealed plans to launch a company voluntary arrangement (CVA) deal last month, in a bid to secure rent reductions.
On Tuesday, Moss Bros said more than 80% of its creditors voted in favour of the deal, surpassing the 75% threshold required to pass the move.
Brian Brick, chief executive of Moss Bros, said the approval of the CVA would allow the company to “reset” its cost base and “emerge from the pandemic on a sure financial footing”.
The retailer, which was impacted by store closures, wedding and social event cancellations and decreased demand for office clothing, operates 128 retail stores and employs about 800 staff.
Moss Bros was acquired by Crew Clothing owner Brigadier for £22.6m in June, after the Takeover Panel stopped the buyer from pulling out of an agreement as the coronavirus pandemic worsened.
Brick said: “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.
“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.”
Will Wright, head of regional restructuring at KPMG and joint supervisor of the CVA, said: “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.”