The owner of supplier XTC Clothing, Sharad Madan, is set to relaunch kidswear chain Adams after buying the company name out of administration.
Madan, who has supplied Adams for several years via XTC, told Drapers this week he was in talks with landlords to negotiate leases to reopen 40 profitable Adams stores this autumn, after buying the Adams name from administrator MCR earlier this month, two weeks after its entire 124-store network and 18 concessions closed.
Adams fell into administration in February for the third time in two years after struggling to compete with the value operators and supermarkets on price.
Madan said he would strip out costs by negotiating favourable deals with landlords and suppliers and outsourcing functions such as distribution. In addition, Madan will source more heavily from his XTC company, which has three factories in India and links with a further five across Asia.
Madan will retain Adams’ existing pricing structure. However, he plans to add hardware such as nursery furniture and pushchairs, although these will initially be sold only via the Adams website.
Franchise partners running 80 stores in the Middle East and five in India will continue to trade.
Madan will act as chief executive but is recruiting for a retail director. He expects Adams to be in profit within 12 to 18 months. In the 10 months to November 31, pre-tax losses were £10.5m.
Market analysis firm Verdict estimated Adams’ share of the kidswear market to be 1.3% in 2009, down from 3.3% in 2004. The market was worth £4.6bn in 2009.