New owner for Howards Storage World has been saved
New owner for Howards Storage World
10 February 2017: Deloitte Restructuring Services partners Vaughan Strawbridge and David Lombe were appointed Voluntary Administrators of companies of the HSW Group on 9 December 2016.
Established on 1997, the home storage solutions retailer trades under the Howards Storage World brand and had a national footprint of 58 stores.
Following a restructure of the Group’s operations, the business and its franchise network has been sold to an experienced retailer with both international and local retail and franchisee experience. The identity of the buyer and the terms of the sale are confidential.
Deloitte Restructuring Services partner David Lombe said: “The HSW Group has been operating in a challenging market for some time, characterised by the failure of a number of established players in the retail sector due to ongoing pressures from deterioriating sales and margins in a highly competitive environment.
“A wide-ranging sale of business campaign was launched on our appointment, and we have been right-sizing the business for sale since.
“Achieving a sale in the current retail environment is an outstanding result and is directly attributable to the restructuring undertaken in the Howards business.
“In the space of two months, we have had to implement a number of restructuring strategies to help turn the HSW Group around and into a viable business, and able to continue to operate most of its own company stores, and to provide support to its franchisees.
“So achieving this sale is a significant outcome, especially the ability to retain almost 80% of the store network, retaining around 160 jobs, and maintaining supplier relationships, demonstrates the strength of the brand and its niche offering.”
46 stores are included in the transaction.
“Importantly, the result could not have been achieved without the understanding and support of employees, suppliers, landlords, and the franchisees,” Lombe said.
The vendor’s legal advisers were Norton Rose Fulbright and the purchaser was advised by Bridges Lawyers.
Deloitte Restructuring Services has successfully sold a number of businesses out of administration and receivership in recent years. These include:
- Quickflix – October 2016
- Koko Black –January 2016
- James Estate wines – January 2015
- Custom Coaches – August 2014
- Black Swan – June 2014
- Tamar Valley Dairy – November 2013
- Buller Wines – August 2013
- Payless Shoes – March 2013
- Retail Adventures – February 2013