HIGH-street menswear retailer Moss Bros has forecast a return to profit this year, despite falling almost £18m into the red.

The company announced in May it would close three of its chains in a bid to target the more fashion-conscious male through a new chain, Code.

That decision to close or convert stores carrying the Savoy Taylors Guild, Suit Company or Blazer fascia led to a £12m exceptional charge.

Falling sales across the three chains to be shut down also hit the company and meant it recorded a pre-tax loss of £17.5m in the year to January 27. This compared to a profit of £7.8m the year before.

However, Moss Bros managing director Roland Gee said he was convinced the company was now on the right track.

A total of 11 Code shops have been opened, containing much larger ranges of casual wear, instead of Moss Bros' out-of-favour traditional formal wear.

Code products were also in 50 of the company's Hugo Boss or Cecil Gee outlets. Mr Gee said sales during the first eight weeks of the financial year were one per cent ahead of the same period last year.

He said that they were beginning to turn the business around, and expected to be back in the black this year.