Losses rise at Bench owner Americana as sales fall
FALLING sales in its key markets, store closures and restructuring costs saw fashion company Americana International Holdings, owner of the Bench brand, slide further into the red.
Accounts for the Ardwick, Manchester-based group, show that while net debt at the private equity-backed group fell from £155m to £151.1m in the year to the end of June 2012, it made an operating loss of £1.5m, compared with an operating profit of £15.5m in the previous year.
Stripping-out interest payments, depreciation, amortisation and other costs. ebitda fell from £27.2m to £14.9m. Bottom line losses rose from £233,000 to £17.7m.
Directors said in their report accompanying the accounts they are “satisfied” with the performance, given the “prevailing market conditions”
Turnover fell 13% to £129.4m as a result of a sharp fall in sales at the wholesale business in the UK and Europe.
The group said the key German market had been hard hit, where the economic environment and concerns over the euro had hit sales, but growth was seen in Austria, France and Spain.
Sales in the UK fell 27% in the period, prompting the closure of five stores trading as Westworld. This cost the group over £4m in restructuring costs (£1.4m) and onerous lease fees (£2.85m).
In addition further costs were taken out of head office, representing £1m. During the period employee numbers fell from nearly 600 to just over 450.
The group, owned by HgCapital, has tried at least twice, to find a new owner. Latest speculation is that JD Sports, which has been steadily acquiring fashion brands such as Henleys and Gio Goi, may be interested, although much will depend on the price tag.
2012 also saw the unexplained departure of chief executive Peter McGuigan, the former boss of sports brand Umbro. He was replaced by former finance director Paul Masters.
Looking ahead the group said that while it expects markets in the UK and Germany to “remain challenging”, its prospects are satisfactory as a result of investment in new markets.
