Kidswear chain Adams Kids is undergoing a two-month shake-up to revamp its product offer and formulate an international growth plan, after its acquisition by ex-Stead & Simpson chairman John Shannon.
Shannon told Drapers he was conducting a strategic review of Adams, which could involve several changes in a short space of time.
It is understood that less than £15 million was paid for the company, which includes the Adams retail portfolio and wholesale and international franchise businesses.
He said the chain, which he acquired last week, would continue to operate under the Adams Kids fascia and that no further stores would close, other than the 42 that have already been announced.
This leaves a total of 273 shops in the UK and Republic of Ireland, as well as more than 100 franchises in 14 countries.
“We want to bring the company back to profit by developing the product ranges and by growing the franchise and international business,” said Shannon. “The management team is currently staying the same. It’s too early to prejudge any changes before the review is complete.”
But a source close to Adams said Shannon needed to streamline the retail portfolio by closing a further 100 stores and strengthening the management team. “Adams needs to be substantially smaller than it currently is and needs to focus on developing new partnerships and new brands. The chain has underperformed in the past two years. Can the current team rescue it? Probably not.”
The senior management team includes chief executive Dean Murray, managing director Patrick Woodall and finance director Clive Drysdale.
Previous Adams owner Myriad Childrenswear, which still holds the manufacturing contract for Sainsbury’s Tu kidswear range, will continue to operate with its existing team. However, Sainsbury’s is not believed to be renewing the contract in September.
A Sainsbury’s spokeswoman said the supermarket was in discussions with Myriad about its future.