Gresham backs management in buy-out of leading UK menswear retailer, The Speciality Retail Group (SRG)

Adrian Wright leads management buy-out of SRG, the leading UK menswear retailer, with financial backing from Gresham Private Equity

Adrian Wright, the former Chief Executive of Moss Bros, and the management team announce the successful management buy-out (“MBO”) of the leading menswear retailer The Speciality Retail Group (“SRG”).

The deal was backed by Gresham, the UK mid-market private equity firm. This represents the 11th investment since August 2004 for Gresham. Previous Gresham retail investments include Cooltrader, Perfect Pizza and The Individual Restaurant Company.

SRG is one of UK’s best known specialist menswear retailer, providing high quality suits from some 80 stores. It successfully trades through a number of well known high street brand names including “Suits You”, “Racing Green”, “Young’s Hire” and “Chester Barrie”.

In the year to January 2005, the Group generated revenues of c. £74m, making it the second largest specialist menswear retailer in the UK. Trading in the current year has remained strong reflecting a demand for high quality, differentiated products.

The UK men’s suit market is estimated at c.£700m p.a. and is forecast to experience further growth. Whilst the retail market remains tough, there is a clear demand for high quality brands sold by SRG stores.

The team will grow the business with 35 new stores planned over the next 3 years and an enhanced product offering. “Chester Barrie” has a number of exciting overseas licensing opportunities whilst “Racing Green” will be targeted with significant brand and retail investment.

Adrian Wright, former CEO of SRG competitor Moss Bros and Bluewater, will become CEO of SRG. Wright is joined by his former F.D. whilst at Bluewater, Steve Johnson. Paul Hick, formerly CEO of Lee Cooper Group and MD of Waterford Wedgwood, will join the Board as Chairman. He has significant experience of private equity transactions in the UK and Europe. The team will maximise its outstanding experience in the retail sector to turn around SRG and lead it in its next development stage.

SRG’s CEO Adrian Wright said: “This is a strong company in a growing sector which is being driven by renewed interest in well-cut, well-made, high quality suits. There is a real opportunity to achieve further growth through investment in our people, our brands and new stores.”

Gresham Director Paul Canning comments: “We are delighted to be backing such a highly experienced management team and investing in a well established, profitable business which we believe has strong potential for further development and expansion.” Paul will hold a seat on the Board of SRG.

Brian Brick, former Managing Director and vendor, who will retain a seat on the Board of SRG as Non Executive Director commented: “Now is the right time to hand over control of the business to a new management team who will grow and develop the business further. I’m very excited about the group prospering in the future.”