Formalwear hire supplier ACS Clothing is planning to expand its distribution centre and invest in its ecommerce operations after receiving an £8.5m investment from the Business Growth Fund (BGF).
ACS Clothing, which supplies retailers including Debenhams, Austin Reed and Burton with formalwear and eveningwear for hire, will use the money to increase the size of its 180,000 sq ft distribution centre by 25% this year.
The funding will also be spent on building its software business Xedo, which provides a range of back-end products such as online outfit builder tools to retailers in the hireand wedding industry. Xedo’s 30-strong team, currently based at ACS Clothing’s Glasgow Business Park HQ, will move into a separate office in the city centre this year.
ACS Clothing chief executive Richard Freedman (pictured on left with BGF regional director for Scotland Simon Munro) said the business was also eyeing international growth.
“We’re talking to people about opportunities in a couple of countries. We hope to have agreements by the end of the year with a view to launching next year.”
The BGF has taken an undisclosed minority stake in both ACS Clothing and Xedo. The fund is backed by banks Barclays, HSBC, Lloyds, RBS and Standard Chartered and was set up to invest in small businesses.