Austin Reed rejects takeover
Clothing retailer expects ‘substantial improvement’
May 9 2003
Austin Reed has decided to take control of its own destiny and reject any takeover approaches for the business.
The UK clothing retailer said it “has concluded that the interests of all shareholders are best served by the continuing independence of the Group.”
Takeover speculation began when Rival clothing retailer Slater Menswear made an initial approach to Austin Reed at the end of March, with the company later contacted “by other parties who expressed an interest in exploring the possibility of making an offer.” Entrepreneur Richard Thompson has also been linked to a possible bid.
With Slater having run into difficulties raising the necessary finance, Austin Reed concluded that “none of the approaches, given their low indicative values or their failure to specify a value, were likely to lead to an offer which would be recommended,” adding that it is “currently not in discussions with any party that may lead to an offer being made for the group.”
Austin Reed said its ongoing investment in the business, including the redeveloped Regent Street flagship store due to open later this year “is expected to deliver substantial performance improvement.
“In addition, the Board is pursuing new licensing opportunities and brand extensions for both Austin Reed and Country Casuals, whilst maintaining an emphasis on delivering operating efficiencies and cost reduction programmes.”
Nigel Robertson, grandson of the firms founder, has also indicated his potential interest in making an offer. However, no proposal has been received. The company said it review any approach made by Robertson when it came.
