Deathwatch: Austin Reed
The suit-u-like vendors of Apprentice-wear are having a bit of a restructure and are floating the idea of offloading around 30 shops, depending on what sort of deals they can get with landlords.
If the deal was to happen, Darius Capital, the principal shareholder in Austin Reed, would be likely to inject fresh capital into the business.
No final decisions have been made at this time.
A Company Voluntary Arrangement (CVA) could be launched as soon as next week, with Deloitte, the accountancy firm, reported before Christmas to have been lined up to oversee it.
Although seeing as companies such as Fitness First, Clinton Cards and JJB Sports have dallied with CVAs, they've ended up shedding branches or completely disappearing.
And, well, once Deloitte get involved, you know doom is ahead.
Austin Reed currently have 230 shops and has been on the high street since 1900. In its latest accounts, Austin Reed Group, which also includes Viyella and CC, made a pre-tax loss of £1.29m on sales of £109m in the year to January 2014, against a pre-tax profit of £1.77m on sales of £113m a year earlier.
A terrible start to the year for the High Street.
TOPICS: High Street News