Moss Bros gets green light for CVA

Moss Bros has received the green light from its creditors to go ahead with a company voluntary arrangement (CVA).

The British formalwear brand, which operates from 128 retail stores and employs around 800 staff, launched its CVA proposal last month following a difficult year for the company that saw it struggle with both store closures and the cancellation of large events.

On Tuesday, the company said more than 80 percent of its creditors voted in favour of the proposal, surpassing the 75 percent threshold needed to go ahead with the process.

No further information has been provided about the CVA, including whether it will impact jobs.

CEO Brian Brick said the CVA will allow the company to “emerge from the pandemic on a sure financial footing”.

“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,” Brick said.

“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.”

Moss to go ahead with CVA

The formalwear category has been significantly impacted by Covid-19, with the cancellation of large events such as weddings and the Royal Ascot dealing significant blows to sales.

In March, when the pandemic was in the early stages in the UK, Crew Clothing-owner Brigadier Acquisition Company Limited agreed to acquire Moss Bros in a 22.6 million pound deal. However, just weeks after the deal was announced, Brigadier sought a ruling from the Takeover Panel to cancel its offer.

Moss Bros successfully opposed the decision, citing a rule in the Takeover Code that states an offer cannot be lapsed or withdrawn “unless circumstances which give rise to the right to invoke the condition are of material significance” in the context of the offer.

In August, Moss Bros called in advisory firm KPMG to work on a potential CVA after talks between the brand and its landlords failed to reach an agreement to turn some of its store estates over to turnaround-based rent.

KPMG head of regional restructuring Will Wright 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.”

Photo credit: Moss Bros, Facebook