Moss Bros is reportedly considering a CVA after calling in KPMG advisers, following a ban on large weddings and events such as Royal Ascot which impacted sales during the Covid-19 pandemic.
According to the Times, the retailer has called in KPMG to assist with restructuring, with reports that 125 stores are now at risk of closing. Other stores could also see rent reductions.
Brigadier, which is controlled by Menoshi ‘Michael’ Shina, the owner of Crew Clothing, agreed to buy the business for 22p per share for a total of £22.6m earlier this year.
Two weeks after the deal was completed, Moss Bros was forced to close all stores due to the coronavirus pandemic.
Additionally, in January, the men’s fashion retailer reported a 3% decrease in total sales for the 24-week period ended 11 January 2020.
Hire sales, which accounted for just under 8% of group revenue in the period, slumped by 17.7% on a like-for-like basis.
Total retail sales, including e-commerce and wholesale, comprised over 92% of group revenue during the period, despite being 1.6% lower than last year.
Online sales from its own website and other online marketplaces for the period were down 0.4% on last year. However, online sales comprised 17% of group revenue during the period, up from 16.6% last year.
KPMG declined to comment.