Next sells Cotton Traders stake
FOUNDERS Fran Cotton and Steve Smith have bought out Next’s stake in their Cotton Traders clothing and footwear business for £15m.
The deal values the Altrincham business, launched by the former England rugby captains who now each hold 50%, at £45m.
Next owned 33% of the shares after investing in 1997. A document at Companies House shows 300,000 shares changed hands at the end of July for £15m.
Mr Cotton, 67, said: “They were one of the first high street stores to understand home shopping, and to do it well so they seemed a natural fit for us.
“At the time the banks were only interested in cash or assets, things like mailing lists didn’t appeal to them ― so we decided to look at investors who shared our vision. In July we were in a position to buy them back.”
In the year to February pre-tax profits increased by 58% to £6.5m, on sales of £80.3m, up nearly 4%. During the period the business opened six stores and closed eight leaving it with a total of 134. Some are stand-alone stores in locations such as the Lowry Outlet Mall and Cheshire Oaks, others are concessions within garden centres.
Mr Cotton added: “We have a very strong catalogue and internet business and they’re totally integrated ― for us it’s very important to deliver a fantastic customer experience, no matter how people are getting in touch.
“Internet shopping now makes up 50% of our business ― and 46% of those orders are made from tablets. That’s happened in the last three years. Our customer age profile is 50-75 and these people are keener than ever to do things online, and we need to respond to that.
“We’re expanding into more international markets, including Australia. They have a big ex-pat community, but no-one does mail order well there. We’re going into Amazon next year too and launching Click and Collect in time for Christmas.”
