American tycoon Warren Stephens has emerged as the backer of a management buyout of UK’s largest specialist bathroom retailer, Bathstore.
According to reports, Stephens has teamed up with Bathstore’s senior management to buy the 170-store retailer from turnaround investor Endless.
Stephens is chairman of the investment firm founded by his late father, Witt. It is understood the deal to back Bathstore was done through a family trust.
Endless acquired Bathstore in 2012 for £15m and has invested around £11m into the business. At the time, the Leeds-based turnaround group intended to hold on to the business for four to five years in the hope that the high street’s prospects improved.
Earlier this year, Favell said Bathstore expected to deliver a double-digit sales increase for its current financial year.
James Woolley, a portfolio director at Endless, said: “Bathstore is undoubtedly the UK’s leading expert bathroom retailer. Over the last two years we have supported the management team in delivering their vision of providing its customers with a full service solution, offering lower price point entry, price transparency, and enhancing its product range. The excellent exit we have achieved today is down to the hard work and dedication of the management team at bathstore and we wish them every success in the future.”
Favell added: “Endless’ support has been invaluable in helping us deliver the improvement in business performance. With their support we have re-established bathstore as the market leading brand in the sector. With our new partner we will continue bathstore’s growth into the future.”
annabel.dixon@estatesgazette.com
