About Project Moda
We were introduced to Project Moda by Stephens Scown Solicitors LLP, a law firm based in Cornwall with which we regularly work on Employee Ownership Trust matters.
Project Moda focused on the fashion retailers which formed part of a wider group. These fashion brands are sold online and through numerous points of sale across the UK and Ireland, generating >£10m turnover per annum.
We worked with the owners of the company to establish an Employee Ownership Trust which was to be implemented immediately after a group restructuring exercise which was separately underway.
For Project Moda, we undertook a valuation of the fashion retailers, analysing historic trading performance, current trading and projections. In reviewing past transactions in this sector we were careful not to focus on distressed sale deals which were not representative of the marketplace as a whole.
Following a presentation of our valuation findings to the company, we worked with them to ensure that the valuation was affordable for the business, taking into consideration other financial commitments and intended use of profits. Once a suitable structure was agreed, we liaised with other advisors on Project Moda to finalise the details of the transaction. We submitted a clearance application to HMRC for the EOT which was granted without further enquiry.