The Original Factory Shop sold again

Source: Retail Digital

Date :14/12/2007 08:27:24

Value retailer The Original Factory Shop has changed hands for the fourth time in its 38-year history after announcing a sale for £68.5 million.

The Burnley-headquartered business was sold to private equity firm Duke Street Capital by existing majority shareholder Barclays Private Equity and the company's management team.

Ten staff at the company - who owned 30.5 percent of the firm - will share a multi-million pound windfall from the deal.

Barclays' buyout operation is also set to make an impressive return on its investment, having bought the business as part of a management buy-out and buy-in for £18.4 million in November 2004.

No reshuffle

The acquisition sees Duke Street take full ownership of the company, although the current management, led by chief executive George Foster, will remain in their current roles.

The deal is the latest in a string of takeovers for the 84-strong chain, which was founded in 1969 as part of the Peter Black's group - a Keighley-based personal care, toiletries, footwear and accessories company.

The Original Factory Shop was bought in its first management buyout in 1994, backed by private equity firms NatWest Ventures, Bridgepoint and 3i.

It was then sold eight years later when it had grown to 42 stores in another management buyout, led by Anthony Solomon, who joined as chief executive. Mr Solomon sold the group to Barclays Private Equity three years ago, when he also quit the group.

Duke Street said it planned to launch an aggressive growth strategy for the chain, with aims to open 15 to 20 stores a year in a move which could create around 700 jobs within three years.

The takeover adds to a growing retail portfolio for the firm, which previously owned DIY giant Focus Wickes.

December 14, 2007