MENSWEAR retailer Moss Bros has plunged £16m into the red after being hit by the costs of shaking up its shops portfolio.

The group, which had been damaged by tough competition on the high street, announced plans in May to axe under-performing stores and cut jobs in an attempt to restore profits growth.

It will keep its Cecil Gee and Hugo Boss shops, but plans to convert the majority of its remaining stores - The Suit Company, Savoy Taylors Guild and Blazer - to a new format selling modern clothing at "affordable" prices.

The group added it had made steps to sell its underperforming stores, with 17 already gone under the hammer and a further 13 in solicitors' hands.

However, a £12m cost of the shake-up saw the company report a £16m loss for the six months to July 29, against a £2.6m profit for the same period last time.

Turnover rose to £71.6m against £66.6m, helped by £3.8m turnover from October's acquisition of The Brand Centre out-of-town sites.

However, like-for-like sales, stripping out the effect of new store openings or closures, were down 2 per cent.

Since the end of the half-year, like-for-like sales improved but were still down one per cent.

Moss Bros added that, as always, the Christmas and New Year trading periods would be critical to determining the outcome for the year.

Commenting on the shake-up at the group, managing director Rowland Gee said: "I think the momentum of change is well underway. Like-for-like sales are improving."

Commenting on the changes occurring on the high street, Mr Gee said: "Suits in fashion terms are doing very well but the classic pinstripe look has taken a hit.

''Menswear is rather a lacklustre market."

To counter this, the group is hoping shoppers will flock to its new "Code"-branded shops, which have more emphasis on casual wear.

Mr Gee said the group was rolling out its new "Code" format and had opened two trial stores in London's Clapham and in Southampton.

The Code name was chosen because it was short and memorable.