Chiltern Mills sold to founder

CHILTERN Mills, one of Yorkshire’s most established textiles retailer, has been sold to its founder Merlin Treymaine in a pre-pack administration deal.

Bosses at the Leeds-based firm recently filed a notice of intention to appoint an administrator, blaming the recession for the move as customers continue to reduce spending.

The pre-pack sale of the business, which specialises in discount linens, textiles and household items, attracted three offers from seven interested parties. 

The offer accepted by joint administrators David Wilson and Julian Pitts, from the Leeds office of business rescue, recovery and restructuring specialists Begbies Traynor, was from Mr Treymaine, who founded the company in 1993 with his wife Jennifer and another family member, Paul Jones. 

In 2005, after 12 years at the helm, Mr Treymaine and his wife sold the company to a management buy-in team only to buy it back after just 10 months in the hands of its new owners.

Chiltern Mills had been advertised for sale during the 10-day notice period and the administrators were formally appointed to complete the sale to Mr Treymaine.

Mr Treymaine has acquired four outlets in Crossgates, in Leeds, Redcar, Worksop, and Sutton in Lincolnshire, which employ a total of 65 staff. 

The future of the chain’s Meanwood outlet, which has been closed for some weeks for refurbishment, is still under consideration.

Outlets in Alfreton in Derbyshire and Bridlington were closed earlier this month with 11 and 15 staff respectively losing their jobs.

Mr Wilson said: “It has been a satisfactory conclusion as far as the administrators are concerned, achieving the best possible price for the creditors.”

A pre-pack deal, sometimes known as ‘revolving door’ administration, involves a deal for the sale of a company’s business or assets before it enters a formal insolvency process.

Restructuring experts say any alternatives, such as keeping the business going for several months while trying to find a more suitable buyer, could prove counterproductive and potentially increase debts to the detriment of creditors.  

Chiltern Mills received new investment from Mr Treymaine and bankers HBOS last year after its parent company Chiltern Mills Holdings went into administration. 

The company’s failure last August was blamed largely on long and expensive leases on several uneconomic properties.