Stockport schoolwear company Parently makes acquisition after HS2 disruption

Schoolwear company The Parently Group has acquired a specialist in footwear for children, putting aside what it admits was the distraction of having to move to a new base in Bredbury, Stockport..

Parently has acquired Dorset-based Term Footwear, which was established in 2016 by Sharon and Lincoln New. 

The financial details of the transaction are undisclosed.

It is the first acquisition for Parently, a manufacturer of childrenswear which owns the David Luke school uniform brand, footwear and clothing brand Grass & Air and sportswear brand Juco.

The company is based at a three-acre site in Bredbury, Stockport, after moving from premises in Ardwick, just south of Manchester Piccadilly station

According to the commentary in its annual report the business suffered “significant distractions” after it was forced to move due to the threat of disruption caused by the construction of the HS2 rail line into Manchester city centre.

A sale price of £4.164 million was agreed on the property. 

However, the accounts state: “This led to significant distractions within the group, diverting management’s focus away from core business activities and strategic growth initiatives, and subsequently impacting trading results, as resources were allocated to managing the transition.”

Turnover dropped to £11.2m from £14m the previous year, but the business recorded pre-tax profits of £2,944,949, an uplift from a loss the previous financial year.

“Cash flow pressures associated with the costs of relocating the business and establishing the new premises were experienced. Additional funding was secured with our banking partners, HSBC, to support our operations through the period of transition. 

“Despite these challenges, The Parently Group demonstrated remarkable resilience by prioritising the stability of its workforce and ensuring the continuity of its key services. While the financial impact was evident with a decrease in overall revenue compared to previous years, the Group is hoping that a platform has been created for recovery.” 

The business they acquired, Term, which is based in Poole, Dorset, has become a trusted brand for its shoes, which are designed with British children and the British weather in mind.

Its product range caters to different age groups and preferences, from primary school children to teenagers, with options such as single and double touch-fastening straps, lace-ups and smart designs.

The shoes are made from real leather sourced in New Zealand and South Africa as a by-product of open cattle farming, while the patent leathers are imported from Italy to ensure durability and a premium finish. Additionally, double-dyed leather means that scratches and scuffs are easy to re-polish.

Sharon and Lincoln New will continue to work with The Parently Group to assist with the transition and share their specialist knowledge and expertise with the team.

Kathryn Shuttleworth, chief executive of The Parently Group, said: “This move into school shoes comes at a time when the school uniform market is undergoing significant changes, driven by shifting ownership models and legislative uncertainties.

“In these times, diversification for wholesalers and retailers is essential. Expanding our offerings builds resistance and reduces risk as markets and products evolve.”

She added: “As a wholesale distributor with a wide retailer network, collaboration is in our DNA. Since our founders, David Burgess and Adrian Luke, started the business, we have remained committed to bringing products that have a strong story that resonates with retail customers.

“We are thrilled about Term Footwear becoming part of our group of brands and look forward to sharing the great opportunities that come from adding these excellent products to our retail portfolio.”

Danielle Tierney and Ben Bradley of Hurst Corporate Finance advised Parently on the acquisition. Mark Winthorpe and Arshnoor Amershi, of Pannone Corporate, provided legal advice.