Coats sheds fashion division
The world’s biggest supplier of industrial sewing thread, Coats, has said it is to sell its fashion retail arm including the Jaeger and Viyella luxury brands. The decision follows last year’s failed attempt by the Glasgow, Scotland-based group to revive Jaeger by going after a younger market.
Coats had already made no secret of its intention to focus on the market for threads which now account for 80% of group turnover. As part of this strategy, the group has made substantial investments in low cost production centres in Asia and is now looking to set up new plants in Mexico and Romania. It had been hoped new life could be breathed into the fashion brands – particularly Jaeger – by making them more fashion-oriented. However, the relaunch flopped after sizing problems with the spring 2002 collection.
The asking price is £50 million ($80 million) , including £6 million goodwill.
