Lawyers act on Alexon rescue deal

LAWYERS from DLA Piper in Yorkshire have advised on a deal that has secured 2,700 jobs at women’s clothing retailer Alexon.

Private equity firm Sun Capital has bought Alexon in a pre-pack administration following the appointment of KPMG.

Teams from corporate and restructuring at DLA Piper’s Leeds office advised Sun European Partners, the subsidiary of Sun Capital that has bought the business, on the deal.
 
Alexon owns seven fashion brands including Ann Harvey, Dash, Kaliko and Eastex, and has more than 80 shops and more than 1,000 concessions in department stores across the UK, with multiple sites throughout Yorkshire.

The transaction will allow the business, which issued a profits warning earlier this month, to continue trading.

The group’s stock market listing and trading in its shares were suspended yesterday.

Richard Obank, restructuring partner in DLA Piper’s Leeds office and John Gallon, partner in the corporate team, together co-led the pre-pack administration for Sun European Partners.

Mr Obank said: “Sun European Partners required an intensely quick turnaround to ensure its bid for Alexon could complete successfully in a timescale of just six days.

“The deal is the fastest deal that Sun European Partners has ever completed globally and demonstrates its ability to move quickly and decisively to save businesses in distressed circumstances.”
 
Mr Gallon added: “Working closely with Paul Daccus at Sun European Partners, this national deal was led by a truly Yorkshire team. The current troubles faced by the UK high street are well documented, so we are pleased that the deal’s successful conclusion will save some well-known retail names.

“The acquisition will give Alexon Group the injection it needs to strengthen its presence and develop its market share as it moves the business forward.”