Endless buys The Works
YORKSHIRE-BASED buyout and turnaround fund Endless has teamed up with two successful retail entrepreneurs to buy Britain’s biggest discount book seller The Works.
Endless bought The Works Stores, which has turnover of £90m and 226 shops across the UK, out of administration last month and has just finalised a 50:50 partnership with Anthony Solomon and David Luper who have built their reputation launching and running chains including Poundzone and The Famous Brunswick Shoe Warehouse.
Mr Solomon has also launched and sold North Shoe and The Factory Shop Group and is believed to have made around £50m from his successful retail deals over the last five years.
The acquisition is the latest by Leeds-based Endless from its second fund of £164m raised from European and US institutions. Endless acquired the business with the support of HSBC.
The Works was bought by Hermes Private Equity three years ago for £55m but suffered trading problems last year and was put into administration in January.
Mr Solomon commented: “I am delighted to have invested in The Works and excited about this opportunity. The business has great scope to restore itself to its historical success via its core markets. I see this as an excellent opportunity for David and me to return to the retail sector.”
Garry Wilson, partner, of Endless commented: “I am very pleased that Anthony and David have agreed to co invest with Endless. We have backed several offers which Anthony has made for retailers in the past 18 months in recognition of his track record in the value and discount market. We look forward to working with them both and know their involvement and investment will greatly enhance the future prospects for The Works.”
Mr Wilson said that while the number of staff in the Birmingham-based head office had been reduced, the new owners plan to increase the number of stores and improve the quality of the products its sells.
Mr Solomon will take up the role of chairman and chief executive with overall day to day control of the business and Mr Luper will become a director of the business.
The Works is the UK’s largest retailer of discount books and artist materials with more than 2,000 employees.
Mr Wilson was introduced to Mr Solomon by Rod Wilkinson of KPMG in Leeds and the two have looked to work together to acquire a retail business over the last 18 months.
Mr Luper has experience sourcing products from China and the Far East and will look to add more branded goods to its product lines.
Endless was founded in December 2005 by former Ernst & Young advisers Garry Wilson and Darren Forshaw with an initial fund of £135m.
Focusing on turnaround situations, it has already completed 26 acquisitions, six full exits and several partial exits. Its biggest deal so far was the sale of Keighley-based Marks & Spencer supplier Peter Black to Chinese trading giant Li & Fung in a deal valued at £48m just 13 months after Endless acquired it.
