Holland & Barrett owners plot £900m debt buy-back

The owner of Nuneaton-based health food retail giant Holland & Barrett looks set to buy back some £900m of debt as part of a plan to put the firm on a more stable footing.

Sky News is reporting that investment vehicle LetterOne has informed Holland & Barrett that it is offering to take back the store’s outstanding debts so that any danger of it defaulting on payments is averted.

Russia-linked LetterOne has owned the 800-strong Holland & Barrett chain since 2017.

The restructuring includes a tender offer in which Holland & Barrett’s lenders can choose to participate in.

A letter sent to Holland & Barrett’s creditors said: “In light of the concerns expressed by lenders regarding the performance of H&B, the sanctions landscape, the increasingly challenging consumer retail business environment and, additionally, the significant operational and business changes H&B requires to improve its performance trajectory on a long-term basis, each lender is being invited to participate in the tender offer to provide them with the option to exit their position in cash today rather than wait until the maturity of the facilities.”