Beleaguered discount bookseller The Works is understood to have been bought by private equity company Endless, as forecast by Retail Week (March 28).
The deal for The Works, which went into administration in January, will save about 2,200 jobs.
In a management buy-in, a new team led by Anthony Skitt and chairman Alan Smith, is understood to have formulated a business plan for returning the bookseller to its core value. Skitt is the former chief executive of ChoicesUK, the high-street DVD rental chain that went into administration last year.
The size of the deal is unclear, but is thought to be in the region of£17 to£25 million. However, a source said that the figure was closer to£17 million. Endless is understood to be only paying about£5 million in cash and HSBC, The Works’ bank, is believed to be rolling over about£12 million of the retailer's debt. An undisclosed sum of working capital will also be pumped into the retailer.
The Works was valued at£50 million just three years ago, when it was sold to Hermes Private Equity.
No comment was available from administrator Kroll or HSBC.
Private equity buyer closes on The Works
No comments yet