Investment firm eyeing North West opportunities with £20m war chest
The London investment firm that acquired Trafford bedding business Julian Charles last year is looking for more North West deals armed with a £20m war chest.
SKG Capital turned Julian Charles round from a £1m loss to a £1.4m profit.
It is now seeking further opportunities across the region during the coming year.
Former chief executive of HMV, Neil Taylor, is an equity partner at SKG and a highly seasoned retailer who will be leading the acquisition process and working closely with the investee companies on their journey.
He said: “The North West has always been a hub for excellent private retail businesses, such as Julian Charles.
“Given the success of Julian Charles, we’re expecting the region to be one of our hot zones for investment.
“We know that family businesses in the North West have been suffering over the pandemic, and hope this will be an important lifeline.”
Privately-held regional businesses will be in the sights of SKG during 2021, as it further cements its position as the go-to investor for British retail brands.
As Britain’s high street continues to tailspin, and government support for retail businesses winds down, SKG’s £20m acquisition hunt could provide a vital lifeline for many businesses that the pandemic has adversely impacted.
The firm specialises in working with retail chains and allied businesses in the retail supply chain, including manufacturers and logistic companies.
SKG says it expects to acquire a number of businesses over the next 12 months.
Founder and managing partner at SKG Capital, Chris Althorp-Gormlay, said: “There are many reputable businesses that the downturn has adversely impacted over the last 12 months. Their balance sheet might have taken a hit, but their potential remains as strong as before, providing they receive the right support and investment.
“These are the businesses that we want to talk to.
“We have the in-house capability, expertise, and the capital to help them through the short term storm, return them to long term profitability, and ultimately rebuild a successful business with a bright future.”
He added: “One of our primary focuses throughout the process is to protect jobs and the supply chain.
“Turning around these businesses must be done in a way that preserves the wider impact they have on the local community and wider economy.”
The news comes as the day of reckoning for retailers fast approaches with the high street reopening next month.
As lockdown eases and government support schemes such as furlough are withdrawn, many well known British brands will have no choice but to shut up shop, unable to ever recover from an unprecedented 12 months.
Neil Taylor, said: “Many of the Government lifelines are ending, which will leave many credible businesses vulnerable to collapse, taking out thousands of jobs in the process. COVID has brought many good, valuable retail businesses to their knees.
“These are the types of businesses we specialise in working with. We have the track record, know-how and the funds to get them back on their feet, just like we have with Julian Charles one of Britain’s oldest brands, established in 1947.”
SKG says its team of retail experts ideally places them to help some of those great brands that are set to collapse over the next six months.