retailworld
17-07-2009, 01:03
Downer leads management buyout at Borders UK
Philip Downer chief executive of Borders UK and finance director Mark Little have led a management buyout of the chain, backed by Valco Capital Partners (VCP). It follows the sale of five of the company’s store leases to New Look earlier this week.
No figures were divulged about the m.b.o. But it means that Borders UK has changed ownership twice in as many years. The business was bought by the Luke Johnson backed Risk Capital Partners in September 2007 for a maximum cost of £20m. Last month Johnson denied that Borders UK was up for sale, though RCP said it was seeking additional investment.
Johnson and Downer have been locked in negotiations for much of this week. It was reported on Tuesday by the Independent that Valco, part of the distressed debt specialist Hilco, had emerged as one of three suitors for the business.
In a brief statement Downer said: "We are delighted that we have been able to secure the future for Borders in what are exceptional times for UK retailing and the global economy. The Borders management team looks forward to continuing to develop our innovative approach to bookselling, driving sustained growth and success in the future, and strengthening our unique position in the UK book market."
Johnson added: "I am very pleased that the management of Borders are taking the business forward with a new backer, and I hope they achieve lasting success."
The sale follows the decision to sell the leases on five of its stores to fashion chain New Look. These stores are located at Oxford Street (London), London Colney (Hertfordshire), Blanchardstown (Dublin), Llantrisant (Wales) and Swindon (Wiltshire). More than 100 staff are currently in consultation over the future of their jobs.
Other companies supported by VCP include Denby Pottery, the 200-year-old manufacturer of premium tableware, and Clipper Marine, a fast-growing leisure boat company.
What do others make of this?
Philip Downer chief executive of Borders UK and finance director Mark Little have led a management buyout of the chain, backed by Valco Capital Partners (VCP). It follows the sale of five of the company’s store leases to New Look earlier this week.
No figures were divulged about the m.b.o. But it means that Borders UK has changed ownership twice in as many years. The business was bought by the Luke Johnson backed Risk Capital Partners in September 2007 for a maximum cost of £20m. Last month Johnson denied that Borders UK was up for sale, though RCP said it was seeking additional investment.
Johnson and Downer have been locked in negotiations for much of this week. It was reported on Tuesday by the Independent that Valco, part of the distressed debt specialist Hilco, had emerged as one of three suitors for the business.
In a brief statement Downer said: "We are delighted that we have been able to secure the future for Borders in what are exceptional times for UK retailing and the global economy. The Borders management team looks forward to continuing to develop our innovative approach to bookselling, driving sustained growth and success in the future, and strengthening our unique position in the UK book market."
Johnson added: "I am very pleased that the management of Borders are taking the business forward with a new backer, and I hope they achieve lasting success."
The sale follows the decision to sell the leases on five of its stores to fashion chain New Look. These stores are located at Oxford Street (London), London Colney (Hertfordshire), Blanchardstown (Dublin), Llantrisant (Wales) and Swindon (Wiltshire). More than 100 staff are currently in consultation over the future of their jobs.
Other companies supported by VCP include Denby Pottery, the 200-year-old manufacturer of premium tableware, and Clipper Marine, a fast-growing leisure boat company.
What do others make of this?