Fashion chain Americana hit by slower UK demand
NORTH West fashion business Americana International has posted increased losses for the last financial year, mainly due to higher interest charges following the 2007 £190m buyout by HgCapital.
Underlying profits – before one-off costs of £25m – soared from £2.5m to £18.5m – reflecting the popularity of Americana’s brands Bench and Hooch and the work done by chief executive Peter McGuigan to internationalise the business.
The accounts detail the costs as: £8m goodwill write-off; £8.4m for bank interest payable; bank and other interest charges of £5.9m and £3.9m for preference dividends.
Total loss for the year to last June was up from £6.4m to £7.7m, while group sales were up at £84.37m.
In February this year Mr McGuigan, who previously rescued sports brand Umbro from the brink of insolvency, told TheBusinessDesk that the Manchester-based business was opening more than 20 stores in Germany this year and also launching in Moscow.
Total loss for the year to last June was up from £6.4m to £7.7m, while group sales were up at £84.37m.
In the directors’ report, bosses said strong growth in Germany had been “offset” by more challenging conditions in the UK wholesale market.
