HMV revealed it was back in the black earlier this month for the first time since it was bought out of administration by Sunrise Records owner Doug Putman in 2019.
Retail Gazette takes a look at the other retailers that have returned to growth after going bust.
Bensons for Beds
Bensons for Beds returned to the black just 18 months after it was rescued in a pre-pack deal from Alteri Investors in June 2020.
The postive trading has continued despite the cost-of-living crisis, with like-for-likes up 7% year on year in the quarter to 31 December.
Alteri has ploughed investment into the beds business to get it back into growth, including a £25m injection to fund a new ecommerce platform, alongside store relocations and refurbishments.
The retailer has worked hard on right-sizing the store porfolio, which has included carving Bensons apart from former Steinhoff stablemate Harveys which it shared 140 stores with.
It planned to open 35 new shops in 2022 and – thanks to another case injection from Alteri last August – will further grow from 166 shops to between 180 and 190.
The retailer also plans to accelerate digital and to enhance its logistics network to increase capacity, speed up delivery times and improve customer service levels.
Bensons for Beds also snapped up Eve Sleep out of administration last October.
HMV
Record vinyl sales in 2022 saw HMV return to profit for the first time since it collapsed into administration in late 2018.
The retailer was rescued by Canadian retailer Sunrise Records, run by entrepreneur Doug Putman.
Although 15 underperforming stores, including its famous Oxford Street flagship, were closed in the aftermath of its acquisition, it has started to reopen stores as performance has improved.
The retailer has shifted away from CDs and DVDs and pushed further into vinyl and pop culture products.
It has also benefited from negotiating better rents with landlords.
Sunrise Records reported that its pre-tax profits skyrocketed to £1.97m for the year ending 30 May 2022 from a loss of £243,000 the previous year.
Homebase
Homebase was bought by Hilco Capital in June 2018 for just £1 following an unsuccessful attempt by Australian retail conglomerate Wesfarmers to use it as a springboard into the UK market.
Hilco took swift action, closing a third of Homebase’s stores via a CVA and two warehouses.
The retailer invested in new ranges, its stores and a new website.
The action had a rapid impact as Homebase returned to profit earlier than expected in 2020.
The DIY retailer posted a £3.2m EBITDA profit for the year ending 29 December 2019, up from a loss of £114.5m in 2018. This grew further the next year with EBIDTA hitting £61m before exceptionals.
Homebase is now planning to open 15 new stores in the next few years and has rolled out concessions in Tesco and Next stores.
Mamas & Papas
Mamas & Papas fell into administration in 2019 almost a week after its rival Mothercare collapsed but its growing concessions business, a revamped website, and the demise of Mothercare has helped it return to growth.
Mamas & Papas returned to profit in its 2020/21 financial year and made further progress in its most recent year, with EBITDA up to £11m as sales surged 35% to £126m.
The brand’s concessions in retailers including Next and M&S are proving particularly popular.
Mamas & Papas, who last month promoted COO Nathan Williams to CEO, set out its plans for further growth, which will focus on more concessions and international trade.
Monsoon Accessorize
Monsoon Accessorize celebrated its return to profit last year after it was bought by founder Peter Simon in a pre-pack deal in June 2020.
The retailer did much restructuring following its collapse, which meant renegotiating contracts and leases. It also revamped its website, stores and improved its product, going back to its ethnic roots.
All this action helped to boost performance. Group sales jumped 43% to £258 million in the year to 31 August, 2022 with retail like-for-likes rocketing 105%.
EBITDA more than doubled for the year to £24.4m as the business’ “lower and more flexible cost base” helped margin jump by 5.3% points.
The retailer’s store portfolio was much reduced at the administration but it has since embarked on a store opening spree.
It has opened 19 stores over the past year and now plans to open an additional 22 in its current financial year.
Monsoon plans to expand its presence in the UK, Europe and the Middle East as well as opening multiple new Accessorize stores in key European airport locations.
LK Bennett
LK Bennett was snapped up by Chinese franchise partner, Rebecca Feng, following its collapse in March 2019.
The retailer was hit by rising business rates, a significant drop in sales as a result of price hikes and was knocked by House of Fraser’s administration.
LK Bennett bounced back last year thanks to store upgrades and investment into its digital channels, which saw sales and profits rise.
The fashion retailer’s profits had skyrocketed 55% to £21.7 million in the year to 31 January 2022.
LK Bennett has introduced new categories, such as bridal and has opened new stores, including in Hampstead and New Bond Street in London, Edinburgh and Portsmouth.
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