Is the venerable men’s clothier Brooks Brothers on the block?
Executives at London-based Marks & Spencer PLC, the chain’s parent, in the midst of a top-to-bottom review, recently told European analysts they had decided to sell their U.S.-based operations, including Brooks Brothers, according to a published report.
Marks & Spencer CEO Peter Salsbury told analysts the review had already resulted in the decision to sell the men’s chain and other assets – a move that could raise $600 million – according to Sunday Business, a U.K. weekly.
A company spokeswoman denied the report, saying the review, which is being undertaken to counter declining profits, would not prompt any sales.
The published report said the asset sale would include Marks & Spencer’s Kings supermarket operation in North America.
“We’re not selling businesses,” said company spokeswoman Jane Lowe. “Peter Salsbury told analysts that the strategic review would not exclude any operations, that includes Brooks Brothers and Kings.”
Speculation surrounding the fate of Brooks Brothers is being fueled by the faltering performance of Marks & Spencer. The company saw its stock fall earlier this year, when it warned that profits will fall as much as 46 percent for the year ending in March.
The shortfall is due, in large part, to disappointing Christmas sales.
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Company profile
Name: Marks & Spencer PLC
HQ: London
Founded: 1894
CEO: Peter Salsbury
Net sales: $13.8B
Net income: $1.4B
Business: Consumer goods and food retailer sells clothing through Brooks Brothers stores in the U.S.
Source: Bloomberg