FatFace for sale: owners hire bankers to find new buyer

FatFace has hired advisors to lead sale process
FatFace has hired Rothschild to lead a sale process
// FatFace’s owners have hired Rothschild to lead the search for a buyer
// FatFace was taken over by its lenders in a debt-for-equity swap in 2020

FatFace’s owners have hired investment bankers to sell the fashion retailer after a bounce back in sales.

Rothschild has been appointed to explore the strategic options for the business, which was taken over by its lenders in a debt-for-equity swap in 2020 to help it get through the pandemic.

However, FatFace’s sales have now returned to pre-pandemic levels, which has spurred it to look for a new buyer, according to The Sunday Times

READ MORE: FatFace appoints Will Crumbie as chief executive

In the six months to November 27, 2021, sales jumped 4% on pre-pandemic levels, and more than a third (38%) of sales were made online. The retailer wants ecommerce to account for 70% of sales in the next five years.

FatFace was owned by private equity firm Bridgepoint, which bought the chain for £360 million in 2007, until mid-2020 when lenders including debt investor Alcentra, Goldman Sachs and Lloyds Bank, took over in the debt-for-equity swap.

The deal reduced FatFace debts by £146.8 million to £25.6 million and enabled it to continue trading throughout the pandemic.

The fashion retailer recently refinanced and secured a £25 million revolving credit facility until 2027.

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