Austin Reed acquired by Alteri Investors
European hedge fund Alteri Investors confirmed on Monday the acquisition of £12million of loan notes and shareholder capital of fashion group Austin Reed.
As a restructuring firm that focuses on the German and British retail sector, Alteri had already become involved with the Austin Reed group in May last year, when it provided a 3 year secured term loan to fund stock and enhance its multichannel operations.
Alteri Investors’ strategy is to invest in stressed retail companies. In the past year the firm also acquired Brantano UK and Jones Bootmaker, and provided German fashion label Basler with a capital facility as part of the retailer’s acquisition by Tempus Capital Fund.
The heritage brand Austin Reed had struggled to sustain growth in the current challenging market conditions. In 2015 the retailer entered into a company voluntary agreement (CVA) and closed down 31 stores. According to reports, the retailer’s annual turnover fell by nearly 8% last year, recording losses of £5.4m
Austin Reed group, with the labels Austin Reed, CC and Viyella was previously owned by Darius Capital.
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