// Holland & Barrett parent company LetterOne is looking to buy back nearly £900m of debt
// The Russian-linked investment vehicle has informed Holland & Barrett’s lenders that it was plotting to reacquire its outstanding borrowings
Holland & Barrett owner LetterOne is planning on buying back £890 million of debt as part of a restructuring deal.
LetterOne, the Russian-linked investment vehicle, has informed Holland & Barrett’s lenders that it was plotting to reacquire the retailer’s outstanding borrowings.
The company has owned Holland & Barrett since 2017.
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Some of LetterOne’s original funders have been sanctioned by the UK and European Union following Russia’s invasion of Ukraine, although the company itself has not been subjected to sanctions.
This has caused concern in some of the lenders to Holland & Barrett, which include HSBC.
“In light of the concerns expressed by lenders regarding the performance of H&B, the sanctions landscape, the increasingly challenging consumer retail business environment and, additionally, the significant operational and business changes H&B requires to improve its performance trajectory on a long-term basis, each lender is being invited to participate in the tender offer to provide them with the option to exit their position in cash today rather than wait until the maturity of the facilities,” a letter sent to Holland & Barrett’s creditors said.
LetterOne said it is supportive of the actions being taken by the management of H&B to achieve the group’s long-term vision, Sky News reported.
“Lenders have expressed significant concerns over the situation,” LetterOne said.
“It is time to focus on a great business that provides vital jobs and improves communities’ health and wellbeing.”
