John Kinnaird has bought Alexon’s struggling menswear division Style Menswear for £1, as revealed by Retail-week.com (January 18).
The acquisition, via Kinnaird’s acquisition vehicle Hamsard 3032, is on a cash-free, debt-free basis. Alexon has placed£3 million in an escrow account – a trust account held in a third-party’s name to pay certain contingent liabilities of Style Menswear.
Style Menswear, which consists of its Envy menswear brand, trades from 55 shops and 60 concessions. Within the concessions, it also sells Tom Wolfe and Parkes brands. In the year to January 28, Style Menswear made an operating loss of£2.7 million on sales of£54.7 million.
In a statement, the retailer said: “This transaction allows management to concentrate on its womenswear businesses and the board believes that this transaction is in the best interests of the Alexon Group.”
Kinnaird is expected to launch a bid this week for Dolcis, his footwear chain that went in to administration last month.