Arev, the investment vehicle behind retail investments including Jones Bootmaker, Blooming Marvellous and Mountain Warehouse, has suffered an exodus of its partners following the failure of its Icelandic backers to provide future funding for its investments.
Retail Week has learned that four of the UK partners of Arev, which invests directly and through Icelandic investment fund Kcaj, have left the business, raising doubts over the future of the investment vehicles retail portfolio.
Arev was set up by former chief of Baugur’s international operations Jón Scheving Thorsteinsson. It is understood that only Thorsteinsson remains at the company.
Kcaj is understood to want to keep hold of its current investments which also include Cruise and Aspinalls of London. The other partners in the company who were responsible for the day to day running of the business have left including Jonathan Eeles, Andrew Manders, Rupinder Cheema and Peter King.
Two of Arev’s former investments, Hardy Amies and Ghost, were both put into administration and subsequently sold on after Kcaj said it would not put any future funding into its investments.
This follows the collapse of the Icelandic banking system to which Kcaj has a direct link including investment bank Straumer.
This, along with the failed acquisition of Danish sports chains Sportmaster and Intersport in June led to the team’s exit.
Arev agreed a deal to buy the Sportmaster and Intersport earlier this year but had to pull out at the eleventh hour due to funding issues blamed on the economic climate. Kcaj is said to have incurred major costs from the collapsed deal.
Arev could not be contacted for comment.
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