Private equity firm seeking sale or merger of Victoria Plum
Private equity giant TPG is in talks about a sale or merger of Victoria Plum, the Hessle-based online bathroom retailer, according to reports.
TPG has been exploring a merger of Victoria Plum, which it bought in 2014, with Bathstore, the high street chain which trades from more than 150 stores across the country, according to Sky News.
Victoria Plum has this month published its latest full accounts, which show that its turnover for the year to 28 February 2018 grew to £62m, from £57m in the previous year; and pre tax profits stood at £201,000 – up from a pre-tax loss of £5.7m in 2017.
The return to profit for the company, which in recent years has reported losses after a High Court battle against rival Victorian Plumbing over trademark infringements, was also accompanied by a move away from operating losses – operating losses amounted to £3.3m in 2017 but the firm returned to operating profits in its recent accounts.
On February 12 this year, an settlement was reached, which led to Victoria Plum receiving a £1.75m payout.
Sources told Sky News that the talks between TPG and Bathstore had been taking place for some time but that they had appeared to stall in recent weeks and might not lead to a deal.
It is understood that TPG would give control of Victoria Plum to Bathstore’s American owners.
TPG has dealt with a many of its firms struggling this year . It was forced to restructuring Prezzo and also sell Poundworld, the value retailer which plunged into administration during the summer.
