Entrepreneur Gabbie’s DIY rescue
RETAIL entrepreneur Roy Gabbie, a non-executive director of the stricken group that owns Fads, has saved 200 jobs after buying more than half of the stores from administrators.
Strategic Retail, parent group of Fads, Leveys and Texstyle World, went into administration on Friday evening, and shares in the Aim-listed group were suspended on Monday.
However Mr Gabbie, who joined Strategic Retail when it previously rescued Fads from administration in 2003, has bought 27 out of the 47 stores and now plans to go on the acquisition trail.
The deal, for an undisclosed sum, has saved 204 out of 307 jobs including the majority of employees at the group’s head office in Holmes Chapel. Stores in Prestwich and Salford will remain open.
The group, which had racked up losses of £885,000, had suffered from the downturn in the housing market, general malaise in the retail sector as well as having problems with its some of its leases.
Mr Gabbie said that the 27 outlets he has bought were all profitable, and he is now looking to expand the business, particularly the seven Texstyle World stores. All three concepts, Fads, Texstyle World and Leveys will retain their brand names.
He said: “I am planning to reposition Texstyle World more towards the value end of the market which I see as the future, and where Fads has been positioned to trade.
“I am delighted to have acquired the stores and save more than 200 jobs, and am confident of a bright future for the new group.”
He added that he now plans to buy a number of distressed retail business, and is currently in talks with a couple of well-known chains.
Mr Gabbie began his retail career in 1975 when he developed a chain of 33 drug stores, Beautycare, which he sold to Lloyds Chemists in 1988.
He then founded Stationery Box which grew into 112 high street stationery stores throughout the UK. He sold the company to a management buy-in backed by a US venture capitalist in 1998.
Strategic Retail was formed in 2003 as a cash shell to acquire companies in the retail sector. Led by a group of Cheshire-based investors including David Mond from Manchester accountants Hodgsons and hi-fi tycoon Julian Richer, Fads was rescued from administration five years ago and placed in the new group which soon floated on AIM. Mr Gabbie joined as a director at the time of the flotation.
He said that it is still unclear what will happen to the remaining stores in the group.
