LONDON — Fat Face, the British lifestyle and outdoor clothing brand and retailer, has canceled plans for an initial public offering later this year, citing current equity market conditions.
The brand said in a statement to the stock market here Thursday that it made the decision despite “a strong level of interaction with, and interest from institutional investors.
“The board remains confident in the prospects for the business, and will continue to execute the growth plans which are already underway,” the statement said.
A source familiar with Fat Face said the company had made a “prudent” decision, given the modest performance of other retail newcomers to the stock market. The source added that Fat Face was also sensitive to the nervousness in the financial markets right now.
On May 1, Fat Face announced plans to float a minority stake on the London Stock Exchange, in a bid to raise up to 110 million pounds, or $186 million at current exchange, to reduce debt. It also talked about plans to break into the U.S. market.
Fat Face was founded in 1988, and the group opened its first U.K. store in 1992. The international private equity group Bridgepoint purchased Fat Face in 2007.