Speciality Retail Group (SRG) chairman Peter Lucas said the menswear retail group - which includes the Suits You chain - would turn a profit in the year to January 2011 after its Company Voluntary Arrangement (CVA) was approved this week.
The CVA, which proposed to shed 42 loss-making Suits You stores and which was deemed more favourable than previous retail CVAs because it proposed to close the stores over an 18-month period, was approved by 98.1% of the business’s creditors.
Suits You is now expected to slim down to become a 30-store out-of-town retail chain.
“I will be very disappointed if we don’t exit next year in profit,” said Lucas. The business made losses of £7.5m in the 11 months to January 2.
He added: “The business is stable now and we are on a good footing for the future. We are keeping some high street flagship stores but the out-of-town stores have proved much more successful and the costs are lower. Customers have been cautious in the recession and are looking for designer clothing and outlet prices.”