The management team at Bathstore has bought out the bathroom retailer from turnaround specialist Endless with the backing of US billionaire Warren Stephens.
Flavell speaks to Retail Week about what the move means for the company.
Why did you choose to work with investment bank Stephens Inc?
They were the guys that backed Walmart at the beginning. To get a huge corporation like that from America coming to a turnaround like Bathstore is fantastic. They started out in the depression era, they invest where there is potential and there’s huge potential in the UK.
We are really grateful for the belief and investment from Endless and now we are on the next level of our journey.
How will this deal change affect Bathstore?
We are not diverting from our strategy. Ours is a growth story – growth is the key. I picked the right investor for our business, we’ve got a clear strategy and I’m really pleased we’ve got people there for us to take the business to its true potential, which is to be the biggest bathroom retailer in the UK.
What is the focus for the business now?
We have to do what we do better in our existing network and we have started doing that by ‘service by design’. Online is doing well, we are an omnichannel retailer so you can now convert your order immediately from anywhere, such as where I am sitting in Shanghai.
Why did you opt for a buyout rather than a float?
All we’ve done is the right thing for the future development of the company. All we will ever do is the right thing for the company, our customers first and foremost, and our colleagues.
What is next for the management team?
This is a long stay investment for everybody. As far as the management stake is concerned we are still in, we were in before and we are in for the future. We haven’t exited and will take things forward.