Card Factory founder invests in discount retailer

DEAN HOYLE, the founder of Card Factory who sold the chain for £350m five years ago, is to become chairman of The Works after making a “sizable investment” in the discount retailer.
The retailer also announced an 11% increase in sales in the year to April, to £157m, and a 15% increase in EBITDA – a measure of profitability – to £9.3m. 
Leeds-based private equity house Endless bought The Works in 2008 and despite achieving year-on-year growth has not yet been able to find a buyer. In May it became the majority shareholder after it acquired the stake of executive chairman Anthony Solomon in May, who stepped down after seven years.
“This is a hugely important day in The Works’ history,” said Garry Wilson, partner at Endless.
Mr Hoyle is chairman of Card Factory’s operational board as well as chairman of Championship football club Huddersfield Town, but this is his first new retail role outside of the company he started he started from a market stall.
He said: “It’s a fantastic business and one that I have been following for a number of years given the growth it has achieved in the discount market.  The Works has a really strong management team in place that has built a platform for the company to achieve even greater growth potential, which it has in abundance.
“The business has a unique retail model and doesn’t have the restriction of the single price structure of many discount retailers, giving it both resilience to market changes and the ability to capitalise on consumer trends. It also has a thriving multichannel platform in place and there is a lot of headroom to add to the company’s store estate.”
The Works, which is headquartered in Sutton Coldfield has 310 stores across the UK. It has increased sales every year since Endless bought it from administrators, increasing by 76% over six years.

The Works’ annual sales, 2009-2015 

Endless’s Mr Wilson added: “Dean’s history with Card Factory has been well documented and his track record is second to none.  He has had the opportunity to work with many other retailers, and for Dean to choose to invest alongside us in The Works underlines both its current strength and further potential.
“We have enjoyed excellent trading and growth over many years at The Works and I know that this will only be accelerated further by Dean joining the team.”

 

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