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SRG to restructure

Speciality Retail Group (SRG), which operates the Suits You menswear chain, is restructuring as part of plans to combine functions with stablemate BMB Group.

SRG, which is owned by Egyptian supplier Arafa Holding, will combine some of its functions with BMB Group, in which Arafa also has a majority stake, to help cut costs in the economic downturn.

Under the restructure SRG’ s buying and merchandising functions for Suits You and its Racing Green brand will relocate from Borehamwood in Hertfordshire, to the Leeds head office of BMB Group.

The Suits You and Racing Green stores will operate under a group retail trading division to be overseen by sales director David Basterfield.

A new trading division will be created to combine SRG’s Young’s Hire operation and its Addison & Steele made to measure operation. This will be overseen by managing director Mike Rich and based in Young’s Hire’s dedicated head office in Borehamwood.

BMB Group chairman Peter Lucas said that the current economic climate made it impossible for the SRG management team to make a success of the business under the existing structure. He said the restructure would create more clearly defined and profit accountable trading divisions and remove duplication across the two businesses.

He added that the company would make every effort to safeguard jobs where possible and would enter into any consultation processes required this week.

SRG’s finance, property management, HR and IT division are also under review.

SRG managing director Nick Keyte will work with Lucas on crating a BMB Direct etaling division and help re-organise the group’s property portfolio.

Suits You has around 70 stores, as well as the Young’s Hire business and the Racing Green brand.

BMB Group owns brands and has the licence for brands including Ben Sherman, Baracuta, Melka and Jeff Banks London.

Arafa bought SRG from private equity company Gresham in March last year as part of plans to expand its European retail operation. In May Arafa Holding increased its stake in BMB Group from 40% to %60.

 

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