Fashion chain All Saints has received rescue investment from private equity firm Lion Capital in a move which has saved it from entering administration.
Fashion chain All Saints has received rescue investment from private equity firm Lion Capital in a move which has saved it from entering administration.
Lion Capital, which owns retailers La Senza and American Apparel, has bought the holdings from two Icelandic banks, Kaupthing and Glitnir, with US private equity firm Goode Partners. The banks came to own a majority stake in All Saints after its previous owners, Icelandic investment group Bauger, collapsed. At one point Bauger owned companies including House of Fraser and supermarket chain Iceland.
Financial details of the deal are undisclosed, but Lion Capital will take a 65 per cent stake in the business with Goode Partners acquiring an 11 per cent share. Chairman of All Saints, Kevin Stanford, will hold onto a 15 per cent stake, leaving the remaining 9 per cent in the hands of the company’s mangement, let by chief executive Stepphen Craig.
The buy for Lion Capital follows its sale of noodle-bar chain Wagamama to Duke Street in March.
The purchase follows weeks of jostling between perspective buyers with Jon Moulton of Better Capital coming out as a potential bidder.
Stanford, comments: ‘I’m pleased to have the support of two private equity firms, both of which are focused on the consumer sector, to put All Saints on a solid financial footing.’
Stanford also co-founded the Karen Millen clothing chain with his ex-wife.
All Saints, which was created in 1994, has 62 shops and 45 concessions across the UK, US and Europe.
Lyndon Lea, partner at Lion Capital, says that the appeal of All Saints was its combination of leading product and store design and online presence. Lea describes the package as beyond many other retailers of its size.
In its most recent financial year, All Saints had reported revenues of £200 million.
David Oddi, partner at Goode Partners, adds: ‘We’re excited to be able to play a role in the development of this dynamic brand at such a critical point of its evolution.’
