Monday, September 11, 2017

News: Greenwoods Menswear in administration

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Historic national retailer, Greenwoods Menswear, has entered administration with 300 jobs and 60 stores at risk - including one in Rotherham town centre.

The move comes after the Chinese owner of the Bradford firm pulled its own stores from the UK market citing concerns over the impact of Brexit.

The retailer has stores nationwide and specialises in men's formalwear and smart casual clothing whilst also developing the 1860 Brand, a hire wear specialist of wedding, evening and Highland wear suits. The company also operates its niche brand "Mansize" which caters for the larger man, whilst still retaining high quality styling and fabrics.

The Rotherham "flagship" store opened on College Street in 2011 in the former Music Zone unit. The move into the store was helped by an £8,000 grant from the Council's Town Centre Business Vitality Grant Scheme.

Last week it was announced that Adrian Berry and Claire Boardman, of Deloitte LLP, were appointed as joint administrators for Greenwoods Menswear Ltd.

Stores were continuing to trade whilst the administrators search for a buyer.

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The firm has struggled in the challenging retail sector before. In 2009 Greenwoods was bought out of administration by Harvest Fancy Hong Kong Ltd, an arm of Bosideng, one of China's biggest clothing chains. Under subsidiary, Pacific Trend Investment, the business was then acquired by fully by Bosideng in October 2014.

An investment and restructuring plan was underway but it was reported earlier this year that Bosideng, which has around 10,000 stores in China, was pulling out of its flagship London store which was expected to be a launchpad for a move into Europe.

For the financial year to March 31 2016, turnover at Greenwoods was £2m down on the previous year at £22.2m. Pre-tax losses went from £1.7m to £1.4m.

In July, the freehold shop investment at 31 College Street (the Greenwoods store) went under the hammer with national auctioneers, Allsop, and was sold at the guide price of £300,000. The legal pack shows that the 3,800 sq ft property was let to Greenwoods Menswear Limited on a lease expiring in 2021. The current rent was shown as £30,000 per annum and the 2017 break clause was not exercised.

The rateable value of the property was revalued down from £56,500 in 2010 to £44,500 in 2017.

Images: Allsops


1 comments:

Anonymous,  September 15, 2017 at 9:57 AM  

Turn the town centre into a housing estate it's your best bet that's all that is left to do no shops already

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