Flannels looks for growth after Sports Direct deal
FLANNELS, the upmarket fashion retailer grew sales and trimmed annual losses from £256,251 to £143,651 in its last financial year before selling a controlling 51% stake to Sports Direct International.
The Manchester-based group, founded in 1976 by current managing director Neil Prosser, has nine shops across the country. While most of its shops are in the North West, the retailer also has sites in Cardiff, Birmingham, Leeds and Nottingham.
The deal with Sports Direct, agreed in July sees the group become part of the listed Derbyshire-based retail giant’s premium lifestyle division, which includes the Cruise and Van Mildert brands.
In the year to the end of March, Flannels’ turnover rose 6% to £16.8m. In May it completed a creditors voluntary agreement (CVA), which saw it close a number of loss-making stores.
Commenting on the year’s trading Neil Prosser said: “The company has continued its turnaround strategy resulting in like-for-like sales for the year being up by 6.7% against the previous year. The company has closed its loss-making stores, consolidating its position in the market.
“There has been an increase in overall retail space, with a significant reduction in overheads. The company successfully completed the CVA in May 2012, this had an immediate positive effect on credit lines and avility to bring stock into the business and convert to turnover.”
Looking ahead, Mr Prosser says: “The company now has access to funds as a result of the arrangement with the parent company. Turnover and gross profit are now expected to grow as a result of this investment.”
