Menswear chain Moss Bros is planning redundancies and could introduce tougher supplier terms as part of a cost-cutting strategy to aid its recovery in a difficult trading climate.
Moss Bros is currently in a consultation period over the redundancies that will span the entire business, including buying, visual merchandising, production and accounts.
Chief executive Philip Mountford said: “There will be a restructuring. After a tough year we’re looking at all aspects of the business, to see what works and what doesn’t, what we can keep and what we don’t need. We’re only doing what every other business is doing.”
He added that consultation over redundancies was likely to run until the beginning of March. Moss Bros is also due to report its year-end results next month.
One supplier said: “It’s very hard for businesses in this sector of the market to get organic growth, so they need to cut their cost base whether it’s by way of supplier terms or staff cuts. The only way to drive growth in this market is through acquisition.”
The menswear group issued a profit warning in December after like-for-like sales dipped 1.5% for the 18 weeks to December 5.