Housewares retailer, Lakeland, has finalised a management buyout for an undisclosed sum, funded by Hilco.
The deal, which sees Lakeland CEO Catherine Nunn continue to lead the board, enables Lakeland’s family owners, Sam, Martin and Julian Rayner, to formally retire from the 60-year-old business.
As part of the agreement, including 58 stores, Hilco Capital has provided financial backing for Lakeland’s operating board to complete the buyout. This new long term capital funding structure will provide a foundation for the future growth and success of the business.
Nunn will continue to lead the day-to-day running of the 58-store business, alongside chief financial and operating officer, Stephen Hill and chief commercial officer, Neil Piggot.
Founded in the heart of the Lake District in 1964, Lakeland has been owned by the three sons of its founder, Alan Rayner for more than 50 years.
Catherine Nunn said: “It’s been a great privilege to work alongside Sam, Martin and Julian since I joined the business nearly ten years ago. Their energy and commitment to our customers and colleagues is a shared passion, and one that I know will always belong at the heart of our business.
Hilco Capital said: “We believe that Lakeland is a very special business, and we are excited to be supporting Catherine, Stephen and Neil as they move into a new era for the brand.
“The retail sector is a challenging space right now, and Lakeland hasn’t been immune to that. Nevertheless, we see huge potential in the business and a bright future. We look forward to seeing the business grow and develop in the years to come.”
In the last set of financial results filed at Companies House, Lakeland reported a £1.95m loss on turnover of £153m and its auditors, RSM, warned of “material uncertainty… [about] the company’s ability to continue as a going concern”.
In the accounts the company admitted it was “facing the most challenging economic conditions for several decades with high inflation leading to falls in demand for many traditional categories”.
