Austin Reed Group has secured an unspecified three-year loan from investment firm Alteri as it aims to turnaround the business and boost its multichannel offer.
- Austin Reed has taken a loan from investment company Alteri
- The loan will be used to help it fund stock and investments inmultichannel
- The news comes after Austin Reed revealed in Janaury plans to close 31 stores
The privately-owned fashion retail group, which incorporates Austin Reed, CC and Viyella, has agreed the financing to help fund stock as well as the group’s investments into multichannel.
Retail Week understands that if Austin Reed is unable to repay the loan, Alteri will gain control of the business. But Alteri said it was created as a vehicle to prevent companies going into administration, therefore taking control of Austin Reed would be a last resort.
In January, the retailer, which is owned by Darius Capital, revealed it was closing 31 stores and getting £3m from shareholders as part of a deal with creditors to rescue the company.
Austin Reed boss Nick Hollingworth said today: “With an improved funding structure in place and following our restructuring earlier this year, the business now has a solid platform to deliver the next phase of development as we seek to further enhance our multi-channel offer.”
According to Companies House filings, Austin Reed made a loss before tax of £1.29m on sales of £109m in the year to January 2014.
Alteri was set up as a joint venture eight months ago with Apollo Investment in order to help struggling retailers.