Investor targeting WHSmith high street takeover eyes Lakeland acquisition
An investment vehicle which is one of two parties currently in the race to acquire WHSmith’s high street business is eyeing a takeover of kitchenware retailer Lakeland.
Modella Capital is among a number of interested parties vying for a stake in the family-owned retailer, Sky News has reported.
A takeover would be the latest in a what is becoming an acquisition spree for Modella, which took control of The Original Factory Shop and Hobbycraft over the past eight months.
The sales process for Lakeland began in January after the retailer hired advisers from Teneo, and is said to have also attracted the former owner of HMV Hilco. One other party is said to be interested in an acquistion.
A Lakeland spokesperson said in January that the retailer was “considering a number of options to ensure a sustainable and long-term capital structure, which builds on our 60-year heritage as one of the UK’s most innovative homeware retailers”.
Lakeland is now understood to be seeking new funding worth up to tens of millions of pounds as it faces further costs including the incoming increase to its national insurance bill.
The retailer – which was established as Lakeland Plastics in 1964 and is now run by the three sons of its founder, Alan Rayner – trades from nearly 60 stores across the UK.
The news comes as Modella explores cost-cutting and restructuring options at both Hobbycraft and The Original Factory Shop. It also remains as one of two potential bidders for WHSmith’s high street arm, alongside Bensons for Beds owner Alteri.