The cash injection from the Icelandic investor, Goldsmiths management and an unnamed supplier is part of a refinancing package and will be used to fund Goldsmiths' merger with Mappin & Webb, a second jewellery business owned by Baugur.
Mappin & Webb was bought by a shelf company for£21 million in 2005, but was formally transferred to Goldsmiths before Christmas. Shareholders also converted£38 million of loans to share capital.
The company said that the additional cash would be used to expand Mappin & Webb chain and refurbish its 27 stores, which finance director Steve Sargent described as 'very tired'.
Sargent quashed speculation that trading at Goldsmiths had been tough. He told Retail Week: 'It was tough last year [2005], but this year [2006] has been terrific and we have good like-for-likes.'
Profits at Goldsmiths slumped from£12.4 million to£2.3 million for the year to January last year. Profits at Mappin & Webb almost doubled to£2.4 million for the same period.
Goldsmiths chief operating officer Justin Stead, who joined the business in September, has been promoted to chief executive designate. Long-standing Goldsmiths deputy managing director Jim West has stepped down from the board, but will remain with the company.
Baugur was forced to refinance its value fashion chain MK One last august, at a cost of£10 million.
No comments yet