Mid-market menswear business Speciality Retail Group, which owns the Suits You chain, has been bought by Egyptian supplier Arafa Holding in a deal brokered by BMB Group chief executive Peter Lucas.
Arafa Holding, which has a 40% stake in UK menswear brand house and supplier BMB Group, bought 71-store SRG from private equity firm Gresham for an undisclosed sum.
Lucas spearheaded the deal in his role as chairman of Arafa’s retail arm, where he is charged with driving a strategy to expand its European business via acquisitions and joint ventures.
SRG’s other fascias include Young’s Hire and Racing Green. The company has a turnover of about £63 million.
Lucas said SRG’s acquisition was not connected to BMB, and that the businesses would run separately. He said: “Arafa is looking to invest in its distribution chain. It constantly looks at its customer base to see whether it should be taking an interest rather than just supplying them.
Lucas added that SRG’s suppliers had had problems getting credit insurance on its orders, but the deal would solve the issue. “Arafa also has a shop opening programme, and Racing Green has big potential,” he said.
SRG’s current management team, including chairman Anton Woodhouse and chief executive Steve Gipson, will remain in place.
SRG sold menswear chain Woodhouse to fashion agency Four Marketing in October, and suiting brand Chester Barrie to Japanese supplier Itochu in July.