Lancashire-based variety retailer B&M has been put on the market following its crowning as Britain’s fastest-growing retailer, it has been announced.
Owned by ex-Barclays executive Simon Arora and his two brothers Bobby and Robin, the discount retailer has seen stunning growth since the family bought it in 2005, opening stores at a rate of one a week according to The Telegraph.
With 290 stores across the UK and enticing up to two million shoppers a week, thanks in part to its acquisition of 11 Focus DIY stores last year, it is understood that financial advisors Rothschild have been appointed to examine the option of selling a significant stake in the business.
In the year to December 31st 2011, pre-tax profit rose 46 per cent to £51.7 million and the retailer employs over 10,000 people, making it a sound investment prospect in a crowded market.
Discount retailers continue to prove highly popular despite the easing of consumer pressures, with discount supermarket Aldi earlier today reporting a 29.4 per cent rise in group turnover to £2.7 billion and it is hoped that B&M’s latest move will further increase its profitability.
Should a sale go ahead, the Arora brothers would be catapulted to the height of the UK’s rich lists with claims that the retailer could sell for up to £850 million.
Commenting on the claims, an unnamed company source told Retail Gazette: “We cannot comment on press speculation but can confirm that the existing shareholders and management are not exiting the business under any circumstances.”