Retailer Seeks Restructuring Assistance Amidst Covid-19 Challenges
- Moss Bros considering a CVA after calling in advisers
- KPMG assisting with restructuring
- 125 stores at risk of closing
- Owner Brigadier agreed to buy business for £22.6m earlier this year
- 3% decrease in total sales in the 24-week period ended January 2020
- Hire sales down 17.7% on a like-for-like basis
- Total retail sales down 1.6% from last year
- Online sales up to 17% of group revenue, down 0.4% from last year
Moss Bros, a men’s fashion retailer, is reportedly considering a Company Voluntary Arrangement (CVA) after calling in advisers from KPMG to help with restructuring due to the impact of the Covid-19 pandemic on its business. The company has seen 125 stores at risk of closing and a decrease in sales following the ban on large events like Royal Ascot. In January, Moss Bros reported a 3% drop in total sales for the 24-week period ended 11 January 2020, with hire sales down by 17.7% on a like-for-like basis. Despite this, online sales comprised 17% of group revenue and were down 0.4% from last year. KPMG has not commented on the situation.
Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about Moss Bros considering a CVA, the impact of Covid-19 on their sales, and the involvement of KPMG in restructuring. It also includes data on the company’s financial performance before the pandemic. However, it lacks some context on the overall retail industry situation or comparison with competitors.
Noise Level: 3
Noise Justification: The article provides relevant information about Moss Bros considering a CVA and its financial situation due to the impact of Covid-19 on their business, including specific numbers for sales decreases. However, it could benefit from more analysis or context on the broader implications of the pandemic on retailers and potential solutions.
Financial Relevance: Yes
Financial Markets Impacted: Moss Bros and Brigadier
Financial Rating Justification: The article discusses Moss Bros considering a CVA, the impact of Covid-19 on its sales, and the potential closure of 125 stores. This affects the financial markets as it involves a retailer’s restructuring and the possible sale to Brigadier. Additionally, the decline in sales during the pandemic has an impact on the company’s performance and the decision to call in advisers for assistance.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses the financial struggles of Moss Bros due to the Covid-19 pandemic and its impact on sales, but there is no extreme event mentioned in the last 48 hours.
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