LONDON — After months of negotiations and stalled talks, the troubled British retailer AllSaints has finally found investors.
This story first appeared in the May 6, 2011 issue of WWD. Subscribe Today.
Lion Capital and Goode Partners said Thursday they had acquired AllSaints, which ran into trouble due to a rapid-fire retail rollout and the collapse of its Icelandic investors.
While Lion and Goode did not clarify the terms of their investment, an industry source said AllSaints was valued at about 105 million pounds, or $173.3 million. The source said Lion would have a 65 percent stake, Goode an 11 percent one, and top management a combined 24 percent.
“We are very excited to invest in a brand with such enormous potential,” said Lyndon Lea, one of the founding partners of Lion Capital.
David Oddi, who founded Goode, said his group was “looking forward to leveraging our expertise to help the management team take this business to the next level.”
Lion Capital’s current investments include American Apparel Inc. and British lingerie brand La Senza, while Goode Partners has a stake in Intermix and the American retailer Luxury Optical Holdings.
Lion and Goode had been working on the deal for the past few weeks. Goode had been working for a while to get a deal off the ground, only to see its former partner, MSD Capital, Michael Dell’s private investment fund, pull out last month.
AllSaints has been forced to restructure following the nationalization of the Icelandic bank Kaupthing, which held a majority stake in the company, and was looking to cash in on some of its investments. That stake had automatically passed to Kaupthing after AllSaints’ original investor, Baugur, filed for bankruptcy in 2009.
Ernst & Young, which put Kaupthing’s U.K. division into administration, the U.K. equivalent of Chapter 11, had been charged with finding new investors for AllSaints. The brand would have fallen into administration had it not found an investor.