12th May 2020 11:10
(Alliance News) - Retailer Moss Bros Group PLC on Tuesday said it will reopen its online operations and added that it is has enough cash in the bank to ensure it can stay afloat in the second half of its year ending late-January "and beyond".
The formal wear specialist will resume its e-commerce operations on Wednesday, with a reduced work force at first.
"The board also notes the government's recent update regarding the potential phased reopening of shops from June 1and is developing plans to reopen its stores in an orderly manner in light of this," Moss Bros said.
Moss Bros said it has accessed the UK government's Coronavirus job retention scheme and implemented salary cuts of between 60% and 70% across its board.
Redundancies have also been made, "where necessary and unavoidable" and Moss Bros is in talks with landlords and suppliers over rent holidays and payment discounts.
"The board is now confident that the group has sufficient cash resources to continue trading through the second half of financial 2021 and beyond. The group remains debt free and retains cash in the bank," Moss Bros said.
Also getting a nod in the update on Tuesday was its potential GBP22.6 million acquisition by Brigadier Acquisition Co Ltd, despite the suitor in April sounding retreat on the deal.
Brigadier Acquisition Co Ltd, which owns Crew Clothing, a UK casual-wear retailer, is attempting to lapse its offer for Moss Bros, it said in April.
Moss Bros agreed to Brigadier's takeover bid in March. Brigadier offered 22 pence per Moss Bros share.
Moss Bros on Tuesday said it is continuing discussions with the UK's Takeover Panel.
Shares in Moss Bros were 3.5% lower at 16.60 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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