Concerns at ‘water shield’ company

Jun 5 2009 by Peter McCusker, The Journal

DOUBTS are mounting over the future of 158-year-old British clothing brand Aquascutum after the group placed its 343-strong workforce into consultation.

The news comes as Aquascutum’s embattled Japanese parent Renown struggles to offload the label, famous for its rain-proof coats.

Renown confirmed last week it had signed a “letter of intent“ with its Hong Kong-based distributor YGM Trading over a potential sale, but a firm offer has yet to be made.

Aquascutum’s staff and the firm’s factory in Corby, Northamptonshire, now face an uncertain future under the consultation being launched as part of a review by new managing director Yukio Ueda.

He was brought in last week to replace former chief executive Kim Winser after she quit abruptly two weeks ago following a failed management buyout.

Further details of the staff consultation “will not be clarified until it is confirmed whether YGM Trading will be pursuing their purchase of the business”, Aquascutum said.

It is expected to start the consultation meetings towards the end of the month.

Aquascutum was founded in 1851 by tailor John Emary, who invented and patented the technique of shower-proofing wools and was the first to introduce rain-repellent cloth.

The name originates from the two Latin words “aqua“ and “scutum“, meaning water shield.