Posts from August 2023

The owner of brands such as Laura Ashley is reportedly considering a rescue bid for ailing retailer Wilko, which filed a notice of intent to appoint administrators last week. Gordon Brothers, which specialises in investing in struggling retailers, is in talks with Wilko’s advisers regarding a potential deal, Sky News has reported. Sources told Sky News that an offer could see Gordon Brothers provide funding to the discount retailer, enabling a restructuring process which would see the closure of a significant number of stores and the loss of many jobs. However, insiders added that the chances of a deal being met were “relatively low”. Other sources told Sky that Gordon Brothers was considering a partnership with other invests to provide around £20m of equity, while supplying Wilko with about £50m in debt financing. Specialist investors Alteri and Opcapita have also considered offers for Wilko over the last few weeks, but these deals are considered to be unlikely to at this point. Wilko’s adviser, PwC, is reportedly seeking binding offers within the coming days as the retailer comes close to running out of cash. If Wilko goes into administration, PwC will commence another sales process before liquidating the retailer’s assets if...

News

LondonMetric completes CT Property Trust takeover

LondonMetric has finalised its acquisition of the entire issued share capital of CT Property Trust (CTPT). The real estate investment trust (REIT) has issued an additional 105.6 million shares, welcoming Columbia Threadneedle-managed property trust’s shareholders to LondonMetric. When the deal was initially announced in May, the value of the takeover was reported to be approximately £198.6m, with it initially expected to come into effect in early July. LondonMetric said the acquisition “adds a high quality and complementary portfolio of assets” and provides cost savings, economies of scale, and an attractive debt structure. Following the takeover the REIT said its portfolio value has increased to £3.2 billion and will generate £160 million of annual rental income. The portfolio consists mainly of industrial and distribution assets, however both LondonMetric and CTPT manage a number of retail assets, particularly out-of-town solus units. Andrew Jones, chief executive of LondonMetric, said: “This opportunistic acquisition will benefit both sets of shareholders and provide greater liquidity. We will immediately begin to integrate the CTPT portfolio assets and work towards disposing of assets that are deemed non-core to our strategy.”

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London-based restaurant Rotorious seeks second location

Peckham-based rotisserie chicken restaurant Rotorious is seeking a second location within London as it looks to expand. Having opened in May 2022, the concept offers cocktails, beers, and sides alongside its core menu of rotisserie chicken. Rotorious is now seeking ground floor units around 1,200 sq ft in size, ideally with an outdoor area. Preferred locations include: Richard Wassel of twentyretail has been appointed to find suitable units.

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Former River Island boss appointed as Neptune chair

The former chief executive of River Island has been appointed as chair of interiors retailer Neptune. Will Kernan led River Island for three years before departing in April. He also previously headed up sportswear group Wiggle Chain Reaction Group and was formerly chief executive of The White Company. He is also currently the chair of Biscuiteers. In his role at Neptune, Kernan will work with chief executive Aalish Yorke-Long, who joined in November 2022. Yorke-Long said: “We are thrilled that Will is bringing his skills as a retail leader to Neptune. His extensive knowledge of the luxury and retail sectors will provide invaluable support to our senior team as we build and execute our strategies to drive the brand forward at a very exciting time in its history.” Since her appointment, Yorke-Long has made a number of senior leadership changes, bringing in commercial director Jamie Bennet, head of marketing Harry Melsom, and head of product Lauren Quelch Woolls.

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The Original Factory Shop to take former M&Co stores

The Original Factory Shop is set to open 16 new stores over the next three months, with a number of these branches taking residence in former M&Co stores. Three stores are set to open in August, with a further eight opening in September and five more in October, The Sun has reported. The discount retailer currently trades from around 200 stores across the UK. In February, M&Co announced that all 170 of its stores would close following its purchase out of administration by AK Retail Holdings. The fashion retailer had entered administration for a second time in December. The Original Factory Shop had previously closed two stores in Bideford and Stourport in May, but is now looking to expand into new locations. Phil Briggs, managing director for The Original Factory Shop, said: “Our investment in new store openings is about making sure we have the right stores in the right place. “We’re identifying catchments where The Original Factory Shop is not represented and that includes a focus on high streets in major towns.”

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Cornish Bakery announces five new sites

Cornish Bakery is set to continue its national expansion with the opening of five new sites. The bakery chain has announced that it will open sites in Canterbury, Salisbury, Harrogate, Norwich, and Cheltenham. A number of new sites are also under negotiation while Cornish Bakery’s branches at several locations such as Gunwharf Quays, Gloucester Quays, Bath, York, Newquay, and Clark’s Village in Somerset have been refurbished and reopened. This comes as Cornish Bakery announced a strong first couple of months of trading at its Truro site, which is the first Cornwall-based site for the chain in a number of years. Steve Grocutt, founder of Cornish Bakery, said: “We’re now well into the process for our upcoming openings in some of UK’s most prominent market towns and cities […]. Bakery is most definitely the new coffee shop, and we’re continuing to bring our unique experience, and our top-flight customer service, to places and spaces all over the country.” In December, Cornish Bakery appointed KLM Real Estate to help deliver on its nationwide expansion.

Deals News

Superdry secures £25m funding to aid turnaround

Struggling fashion retailer Superdry has secured a secondary lending facility of up to £25m as it looks to accelerate its turnaround plan and cost reduction programme. The facility, secured from Hilco Capital, comes in addition to Superdry’s existing £80m lending facility with Bantry Bay. Superdry said the new facility will help “mitigate the headroom gap” on its outstanding credit agreement. The retailer’s agreement with Hilco is a 12-month term with the option to extend, and has an interest rate of 10.5% plus the Bank of England base rate. In March, Superdry called in advisers after multiple profit warnings. For the first half of the 2023 financial year, Superdry recorded losses before tax of £13.6m. During this period, the retailer’s wholesale business saw sales decline by 5.2%.

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LCP aquires Grimsby’s largest retail park

Alexandra Retail Park, Grimsby‘s largest retail park, has been sold to commercial property and investment company LCP, part of European investment operation M Core. The retail park formerly owned by Zurich Assurance Ltd has 560 parking spots, spans 125,695 sq ft and houses popular national brands like Matalan, SCS, The Food Warehouse, Argos, Pets at Home, and Poundstretcher. The undisclosed transaction is part of LCP’s proactive approach to acquiring properties within shopping parades, centers, and retail parks across the nation. James Buchanan, Managing Director of LCP Group, stated; “Our team is diligently seeking out sites with potential for value enhancement, offering tenants good value, providing a positive local shopping experience, and ensuring a solid return on our investment.” Over the past year, M Core has invested over £160 million in 25 retail centers. Notable acquisitions include Cwmbran Centre, Cwmbran; The Galleries, Washington, Sunderland; and Three Spires in Lichfield. The firm remains active in the acquisitions market, with a budget of £300 million available for investments ranging from £500,000 to £30 million. LCP has appointed agents Henry Phipps of Edgerley Simpson Howe and Duncan Wiley of PPH Commercial to oversee this venture.

Deals News

Card Factory announces “positive start” to the year

Card Factory has said it has seen a “positive start” to its financial year. In the six months to the end of July, the greetings cards retailer said that trading was “materially ahead of the Board’s expectations”. In a trading statement, Card Factory said: “The macro backdrop continues to be uncertain, and there is still much to be delivered over the remainder of the year. Nevertheless, given the strength of the performance in the first half, together with our current outlook for the second half, the Board now expects the full year outturn to be materially ahead of its’ previous expectations.” Card Factory previously reported in May that its revenue for the year ending January 31 grew by 27.1% to £463.4m as more customers returned to stores post-Pandemic. The retailer’s pre-tax profit also increased to £52.4m from £11.1m the previous year. Card Factory’s fortunes form a striking contrast to those of rival chain Clintons, which could lose a fifth of its stores as it looks to avoid insolvency.

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Tributes paid to Alton Towers founder John Broome

Tributes have been paid to the founder of the Alton Towers theme park John Broome, who has passed away aged 80. Broome enjoyed a 60-year career working at major attractions including Trentham Gardens, Battersea Power Station, Ironbridge Gorge, and was the CEO of Camel Creek Resort in Cornwall. He founded the Staffordshire theme park in 1980 after having bought a concession to open a train ride through the Alton Towers estate in 1973. Broome then sold the theme park in 1990 to the Tussauds Group. A statement from Imperial Corporate Capital, at which Broome was a board member, said: “John was not just a colleague; he was a visionary and a pioneer whose far-reaching impact on the tourism industry is renowned. From transforming Alton Towers into a landmark theme park to his innovative vision for Camel Creek Resort, John’s creativity and determination were truly extraordinary. “His contribution to Imperial Corporate Capital, as well as to the broader industry, was marked by his relentless pursuit of excellence and his ability to see potential where others did not. His loss leaves a void that will be deeply felt by all who had the privilege of working with him.”

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Sandbox VR opens first location outside of London at Bullring & Grand Central

Sandbox VR has opened the doors to its largest site and its first UK centre outside London at Hammerson’s Bullring & Grand Central in Birmingham. The 13,000 sq ft space will add to the Birmingham scheme’s leisure offering which will see the arrival of bowling brand Lane7 and interactive football concept TOCA Social later this year. The virtual reality experience utilises motion capture cameras, full body trackers, custom hardware, and haptic feedback suits to provide an interactive gaming experience. Visitors will also be able to grab something to drink from Sandbox’s robotic bartender ‘Toni’, while the centre also offers a private area for parties and events. Toby Tait, director of asset management at Hammerson, said: “The West Midlands has a long history of technological innovations, so it’s fitting that Sandbox VR has chosen Birmingham’s Grand Central as the destination to take this pioneering experience even further. Pushing the boundaries of leisure and active entertainment, the launch of Sandbox VR’s largest site and first outside of the capital reinforces our commitment to diversifying and repositioning the destination.” Bruce Gillingham Pollard, BWD Retail, and Cushman & Wakefield are the retained letting agents for Bullring & Grand Central.

Deals News

Woodhead opens fifth restaurant in Fitzrovia

Woodhead Restaurant Group has opened its fifth restaurant and its third in Fitzrovia at 64 Goodge Street, Shaftesbury Capital has announced. Taking the name of its home address, the Gallic-inspired restaurant spans 1,600 sq ft and joins Woodhead’s Portland and Cliptone concepts in the neighbourhood. Providing 34 covers and an additional 10 in a private dining room, 64 Goodge Street offers an English and French-inspired menu, with an emphasis on wine from the Burgundy region. Andrew Price, executive director at Shaftesbury Capital, said: “64 Goodge Street further strengthens our portfolio in Fitzrovia, joining the unique line-up of destination dining concepts offering an unrivalled choice of global cuisine. Woodhead Restaurant Group have operated around here for many years to great acclaim; they understand what really appeals to all those that live, work, and visit this historic West End neighbourhood.” DCL acted on behalf of Shaftsbury Capital for the deal. The news follows last month’s opening of MealTime Malatang’s European debut, the Chinese restaurant also launching on Goodge Street.

Deals News

Patty & Bun founder to open pub on the Thames

The founder of burger chain Patty & Bun Joe Grossman is set to open a pub and restaurant in the London village of Barnes. The Watermans Arms will sit along the River Thames within a building that was once the home of an 1850s Watney pub. Customers will be able to make use of an outside dining area with the capacity for 14 covers, while the first floor will host a private dining room with space for up to 16 covers. The pub’s kitchen will be headed up by head chef Sam Andrews, formerly of the Camberwell Arms and Ducksoup in Soho. General manager Simon Walsh, previously of the Anglesea Arms in Hammersmith, will lead the front of house team. Shelley Sandzer acted on behalf of the landlord for the deal. Richard Thomas, director of agency, said: “Soon to be a cornerstone for the neighbourhood, The Watermans Arms will deliver on both its pub and restaurant elements, in a way that is elevated but instantly recognisable. We always advise landlords on how they can curate a place, introducing exciting F&B concepts like The Watermans Arms that are designed for both the location and its community.”

Deals

Proposals submitted to complete £15m Shankly Hotel development

Development at a Preston hotel which was halted by administration troubles could be resumed after the submission of fresh plans. Proposals submitted by Signature Living for the Shankly Hotel could see the creation of a new bar and restaurant, wedding and events space, and a spa. Signature Living purchased the property, which was formerly a Post Office building, from Preston City Council in 2018. Work to transform the building had started in 2017 but was delayed in 2019 due to uncertainty around Brexit and additional issues relating to asbestos within the site. The Pandemic then caused the delays to continue, however work resumed in June 2020 and the building’s new roof extension was eventually completed by 2021. Work at the hotel came to a stop in August 2022 when Signature Living entered administration, owing over £22m to its creditors. It is not specified how many rooms the hotel will include, however Signature Living had previously received permission for 66. It is believed that around 60 room will be created.

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World’s largest Lush store sold for nearly £9m

The site of the world’s largest Lush store has changed hands in a deal worth nearly £9m. The 37,000 sq ft superstore on Liverpool’s Church Street has been sold by NFU Mutual to an undisclosed buyer for £8.8m. Knight Frank first marketed the property on behalf of NFU Mutual in April, with an asking price of £9m. Lush took up occupancy of the four-storey building in 2019 and has a deal to remain in the property for a further decade. The store was once home to Dorothy Perkins and Burton. Tom Bostock, property investment manager at NFU Mutual, said: “The sale forms part of our ongoing property investment strategy that currently tilts away from high street property.” Bruce Gillingham Pollard represented the purchaser.

Deals News

M&S to invest £13m into North East stores

Marks & Spencer has announced that it will invest £13m into its North East estate over the coming year. The retailer’s Newcastle City Centre store will be the first to receive the benefits, undergoing a multimillion pound development to create a new food hall and clothing, home, and beauty department. A 47,000 sq ft M&S store is also set to open at Washington Galleries Retail Park, near Sunderland, next spring. Work is already underway to combine three previously separate units at the retail park to create the new store. The existing M&S Simply Food in Washington will stay open as normal until the new store is ready. The announcement is part of the retailer’s wider £480 million investment into ‘bigger, better stores’ across the UK. M&S recently revealed its ambition to accelerate its five-year store rotation programme to three years, targeting completion by 2025/26. The retailer is already expecting to open 20 new stores this year, including 12 new M&S Foodhalls, and is aiming to renew an additional 12 existing M&S stores with its latest design and technologies. Last year, M&S invested in its Silverlink Shopping Park and Gosforth stores in Newcastle.

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Mango opens flagship store in Milton Keynes

Mango has opened a new flagship store at Milton Keynes’ Centre:mk shopping centre. The Spanish womenswear brand has taken a 4,693 sq ft unit on Midsummer Arcade, and will join a number of retail brands which have recently signed at the scheme. The store utilises the brand’s latest retail concept, called New Med, which aims to reflect Mango’s Mediterranean roots. Kevin Duffy, centre director at Centre:mk, said: “It is a huge vote of confidence in Centre:mk that internationally renowned retailer, Mango, has selected the destination to launch its new, regional flagship store, bolstering the destination’s reputation as one of the UK’s most successful retail and leisure destinations. Mango’s reputable fashion offering makes it a fitting addition to Centre:mk and will fit comfortably amongst our strong anchor brand line-up.” Mango’s opening at Centre:mk follows the arrival of Phase Eight at the scheme, while fashion retailer Reiss is set to open later this summer. FMX Urban Property Advisors and CBRE acted for Centre:mk.

Deals News

Multiple independent businesses sign for Halifax’s Dean Clough complex