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SRG sets 2011 profit target following CVA approval

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.”

Lucas reassured suppliers that there would be no change to the brand mix at Suits You, which includes Ted Baker, Ben Sherman and Melka.

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