Melka Tenson to be sold
Women's clothing retailer Jacques Vert is to dispose of wholesale division Melka Tenson to Lagrummet December 1331 AB, a company controlled by EQT Opportunity, which is in turn backed by a Swedish private equity group.

Melka Tenson consists of menswear brand Melka and outdoor clothing brand Tenson and the deal is subject to formal clearance from competition authorities in Norway and Germany.

The transaction is valued at approximately£6.25 million, including the repayment of existing debts to Jacques Vert. After costs, Jacques Vert will receive net cash of about£2.1 million. However, the price could vary depending on Melka Tenson's actual working capital upon completion.

During the year ending April 29, Melka Tenson generated total sales of£24.35 million, but made an operating loss of£260,000 before taxation and after allocating a proportion of central overheads.

Jacques Vert chairman Derek Lovelock said: 'This disposal represents another significant step forward in the group's strategy to develop further as a leading retailer of womenswear clothing brands.

'Following the recent announcements of the successful elimination of various legacy issues, the group is well placed to expand its core retail business in the UK and overseas.'

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