Austin Reed hints at Country Casuals sale
Fashion group reviewing underperforming womenswear brand
Fashion retail group Austin Reed has sent a strong signal that it is considering selling its underperforming Country Casuals womenswear business.
Chairman John Robins told shareholders at the Austin Reed annual meeting that the group has launched a complete review of its entire business, which it will report further on later in the year.
While menswear, which makes up about 80 per cent of Austin Reed brand sales, has performed encouragingly since the start of the new financial year, Austin Reed womenswear has underperfomed, and “Country Casuals’ main range remained under pressure as market conditions in the quality classics sector continue to be challenging”. The Country Casuals Petites sub-brand saw stronger sales.
[img r]austinreed-mens_shirts.jpg[/img]Total retail sales in the 16 weeks to May 22 were up 2 per cent, while like-for-likes, excluding the Regent Street flagship store, which was undergoing a revamp last year, fell by 4 per cent. Overall sales at the Regent Street store were up 28 per cent year-on-year.
There has been speculation that a possible buyer for Country Casuals could be a consortium of brothers Maurice and Michael Bennett, who sold the Oasis fashion chain to an MBO three years ago, in partnership with fellow retailer Mark Bunce, a former chairman of Country Casuals.
All three are currently shareholders in the Phase Eight fashion chain, and are reported to be looking to sell their stakes, which amount to 48 per cent of the business. Phase Eight operates around 40 UK stores and another 40 concessions, with the majority shareholding owned by founder Patsy Seddon and her partner Peter Urquhart.
It has also emerged that finance house Dawnay Day, which has been linked to a possible bid for Austin Reed, now controls more than 19 per cent of shares through both standard holdings and contracts for difference.
