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The family behind kitchenware retailer, Lakeland, has reportedly recruited advisers to explore a sale after more than 60 years as growing cost pressures loom, according to Sky News.
According to accounts filed at Companies House for 2023, that year faced “the most challenging economic conditions for several decades” with high inflation leading to falls in demand for many traditional categories.
As a result, sales were broadly flat at £153m, with the retailer’s auditors warning of a “material uncertainty about the company’s ability to continue as a going concern”.
It is understood that Lakeland had engaged Teneo as financial advisers last Friday (24 January), with potential bidders having been contacted in recent days.
Meanwhile, PwC has reportedly been appointed to advise Lakeland’s principal lender, HSBC.
The sale process is said to be at a very early stage, and as such, not much is known about the identity of potential bidders or the structure of a deal.
A Lakeland spokesperson told Sky News: “Lakeland is one of the UK’s most loved and trusted brands. In response to the challenging retail environment, we are considering a number of options to ensure a sustainable and long-term capital structure, which builds on our 60-year heritage as one of the UK’s most innovative homeware retailers.”
The business, which was established in 1964 as Lakeland Plastics, is now controlled by the three sons of founder Alan Rayner. Lakeland currently employs some 1,000 members of staff across a portfolio of 59 stores.
