Formal menswear retailer SRG has been sold by private equity group Gresham Capital to Egyptian investor Arafa Group.

The deal, which was completed last night, comes less than six months after Gresham completed the refinancing of the struggling retailer.

Arafa Group has invested in several other fashion retail and textile companies, including BMB Group and Swedish menswear brand Melka.

Arafa Holding chairman Dr Alaa Arafa said: “As the Arafa Group develops its interests across Europe, a retail acquisition in the UK of a business that is a major customer to our group is a logical development. This acquisition is being made as a standalone development opportunity for the group and is not linked to Arafa Holding’s other investments in Europe.”

Profits at SRG wereÂŁ36.7 million for the year to January 28, down fromÂŁ39.7 million the previous year. Gresham bought SRG in 2005 for aboutÂŁ30 million.

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