High & Mighty move for N Brown
MANCHESTER home shopping giant N Brown has taken its first step on to the high street with the purchase of the 14 High & Mighty stores from administrators.
The deal, which includes the brand, website, stock and assets of the niche store for larger men, was for £1.6m in cash. In the year to the end of January it had sales of £8m.
Chief executive Alan White told TheBusinessDesk: “We do have some stores in the North East selling end-of-line stock, but as a high street brand this is a first for us.
“High & Mighty fits our niche well and we feel there is good opportunity with it. We have been able to cherry-pick 14 stores that are profitable or could very quickly be.
The stores have in general been under-invested in terms of product range, merchandising and general look.”
He said N Brown was not inheriting the leases of the stores it was buying, which meant the venture was a low risk.
“We are taking the leases under a licence from the administrators for six months, after which we can decide whether to take another one. This de-risks the whole transaction as we can have a look without an upfront commitment to long term fixed costs.”
He said board believes there is an “excellent opportunity”y to create a multi-channel retail business with this brand comprising a portfolio of stores in major cities complemented by the reintroduction of catalogues and the development of the online offer.
N Brown Group plc will be announcing its half year results on 14 October 2009.
