Superdry investor Hilco Capital is close to securing a deal to fund the buyout of Lakeland.
The ex-Homebase owner and Lakeland’s management are in advanced talks about a deal to provide around £25m of new funding that will see it become joint owners of the homewares retailer.
It is understood a deal could be formally agreed in the coming days, Sky News first reported.
The retailer, which employs around 1000 people, operates 59 stores across the UK and is headquartered in Windemere.
Lakeland is thought to have spent the last few months in discussions with several potential buyers, including WHSmith’s high street new owner Modella Capital.
The retailer’s management has been seeking tens of millions of pounds of new funding to tackle increasing headwinds arising from the national insurance hikes.
The cash injection will help refinance Lakeland’s existing debt as well as provide it millions of pounds for working capital, The Telegraph reported.
The retail chain has been working with advisors at Teneo to explore its options and PwC has been advising the company’s principal lender HSBC, which is expected to end its involvement with the company.
The retailer’s accounts filed at Companies House for 2023 warned that it entered that year “facing the most challenging economic conditions for several decades with high inflation leading to falls in demand for many traditional categories”.
Lakeland’s auditors warned of “material uncertainty… [about] the company’s ability to continue as a going concern” after sales for the year were flat at £153m.
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