PAS Group is pursuing restructuring options and has appointed a team of advisors to assist.
The move is largely due to disruption caused to the business by COVID-19 and having regard to the operations of the company more broadly.
Brendan Santamaria has resigned as MD of Designworks, which operates brands such as Everlast, Mooks and Lonsdale.
As a result, the Board has requested that Eric Morris, currently PAS Group CEO and MD, to also assume the role of CEO of Designworks.
The Board and management are continuing to assess the potential restructuring options with the assistance of their advisors, although the precise nature and detail of the restructure has not yet been finalised.
It is likely that the restructure will involve a further reduction in the number of retail stores and a significantly reduced fixed cost base.
With the assistance of their advisors, PAS Group intends to work with its landlords, banks and other stakeholders to explore a range of options to simplify the business and establish an appropriate cost structure.
Management has been focused on growing the company’s successful online business, expanding its Designworks wholesale business and rationalising its retail store network to profitable locations.
In FY19, PAS exited 42 unprofitable stores including 14 David Jones concessions, and entered an exclusive partnership with Myer for Review concessions.