Sports Direct in surprise Austin Reed bid
Sports Direct’s Mike Ashley is thought to have thrown his hat in the ring for menswear retailer Austin Reed.
It is understood that Ashley has tabled a surprise £30m bid for Austin Reed which went into administration at the end of last month.
Administrators Alix Partners are thought to have received around 50 expressions of interest, with bids thought to be around £30m.
Last week, Touker Suleyman, owner of Hawes & Curtis, Ghost and Low-Profile and a panellist on the BBC’s Dragon’s Den series, publicly expressed an interest in “parts of” the upmarket retailer. Private equity firm, Better Capital, and high street retailers White Stuff, Joules and Moss Bros are thought to be among the other companies that have made bids for the retailer.
Austin Reed first opened its doors in 1900 at Fenchurch Street in the City of London and is one of the UK’s best-known menswear brands. Its former clients have included Sir Winston Churchill, whose famous “siren suits” were specially crafted by Austin Reed so that the wartime leader could put them on in 10 seconds in the event of an air raid.
It has suffered from a decline in sales in the last few years and finally entered administration on 26th April, citing “cash flow difficulties arising from challenging retail market conditions”. The firm, which also owns CC and Viyella, employees 1,200 people across 100 stores and 50 concessions in department stores.
Thirty-one Austin Reed shops closed last year, including their flagship outlet on Regent’s Street. Speaking last month, Peter Saville, one of the joint administrators, was optimistic about the future of the clothing chain: “Austin Reed is a well-regarded and iconic brand and therefore we are confident that it is an attractive proposition for a range of potential buyers.”
It continues to trade while the administrators try to find an appropriate buyer.
Ashley has also stated an interest in rescuing BHS, saying: “We would anticipate that there would not be any job losses, including jobs at head office, and that all stores would remain open".