Moss sells eight Cecil Gee stores for £1.7 million
Menswear retailer Moss Bros has announced that it has sold eight of its nine Cecil Gee stores to JD Sports Fashion for £1.7 million in cash.
The remaining Cecil Gee store in Glasgow will be converted to a new format Moss store in the next few weeks.
The sale, along with the disposal of 15 Hugo Boss franchised stores earlier in the year, will help to focus growth and resources on the core Moss business which would result in a much simpler business model, the retailer said.
The cash proceeds of the disposals will provide funding for the redevelopment of Moss branded stores, investment in service experience, the roll out of new pilot initiatives such as Moss Bespoke, and the development of a customer relationship management system to leverage the value of the hire business, Moss said.
Excluding Cecil Gee, the company's like-for-like sales for the 20 weeks to 18 June were up 13.4%.
Commenting on the disposal, Brian Brick, Chief Executive of Moss Bros, said: "This is another significant milestone in delivering the strategy we set out of leveraging the core Moss business. Having restored the quality of our product offering and continued the strong momentum in positive like-for-like sales, this transaction will give us the opportunity to accelerate investment and development of the brands which we own, from a position of operational focus and financial strength."
He added: "Although we are ever mindful of the fragile trading conditions in the UK, we are making good progress towards leadership of the attractive niche which we have as the UK's number 1 branded suit specialist."
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