Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Takeover approaches boost SR Gent shares

Nigel Cope
Thursday 24 October 1996 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

SR Gent, the Marks & Spencer clothing supplier which announced last month that it was in crisis talks with its bankers, has received at least two takeover approaches, writes Nigel Cope.

The company said yesterday it had received preliminary approaches from several parties that could lead to an offer. SR Gent shares rose 17 per cent to 62.5p on the news. At this price the company is valued at pounds 22.7m.

Any takeover would have to be agreed by the group's two leading directors - the chairman, Peter Wolff, and Peter Wetzel, who jointly hold 62 per cent of the shares.

Talks are at an early stage and discussions with bankers about a potential refinancing are continuing.

Last month, the company's shares plunged by 41 per cent when it said it was taking a pounds 14m charge to cover the cost of closure of its Clothing Barn retail chain, which had been hit by poor margins and weak sales.

The announcement forced the company to delay publication of its results for the year to June. These have still not been released.

Like William Baird, SR Gent intends to focus on its main business of supplying clothing to M&S. SR Gent supplies M&S with ladieswear such as blouses, dresses and skirts. This business accounts for 90 per cent of group sales.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in