Penny Plain seeks £2m for expansion

Womenswear chain and mail-order business Penny Plain is on the hunt for investors to fund expansion.

Managing director Nick Oliver said he was in talks with venture capitalists and banks. 'We are still finalising our growth plans,' he said. Penny Plain has previously said it wanted to invest£2 million in increasing store numbers from 7 to 20 over the next three years, with each store costing about£50,000.

Oliver said, depending on the level of investment, Penny Plain could sustain 40 stores and double mail-order sales to£8 million. Group sales are expected to hit£5.5 million in the year to January 2004.

Oliver said group sales are up 30 per cent on the same time last year, although this includes new stores.

Four more shops will open next year.