Adams eyes a profit as sale talks denied

Shannon dispelled speculation that he has touted the business to potential overseas investors and remains committed to driving the retailer into profitability.

“We are in a good position and still have lots to do,” said Shannon. “We are expecting to be£7 million up on our bottom line [for the year ending January 25] and will continue to focus on growing our margins.”

He said he has managed to cut the retailer’s£15 million excess stock that he inherited.

Shannon added that the retailer’s commitment to better-quality clothing and good customer service sets it apart from the tough competition of the supermarkets. Adams has also moved away from heavy year-round discounting.

“We still have special offers, but they are more specific now,” said Shannon. “We are also reintroducing fitting rooms to stores, have added extras to improve the shopping experience and are continuing with our refurbishment programme.”

Shannon, former owner of Stead & Simpson and Country Casuals, said initial uncertainties from staff and suppliers following the acquisition have been allayed and the retailer has not experienced as brutal a hit from the credit crunch as other industry sectors.

“People’s children do still grow, which makes us slightly more resilient,” he said.

Shannon said growth would come from international markets such as India and Russia. The retailer has 381 stores worldwide, including 241 in the UK.

The Adams web site, which now sells the retailer’s mini-mode range, is trading as its biggest store in the UK.