New investment for Chiltern Mills following administration

ONE of Yorkshire’s most established textile retailers, Chiltern Mills, has seen an injection of further investment by its founder to secure its future following the administration of its parent company. 

The retail chain, which has turnover of £12m from 12 shops selling bedding, towels and other household textile products, has received new investment from founder Merlin Treymaine and backing from bankers HBOS following the administration of parent company Chiltern Mills Holdings.

The deal was supported by advice from a legal team at Leeds-based law firm Brooke North led by partner Stuart Frith.

The backing and reorganisation will take the firm out of the ownership of its former parent company and will see the head office move back to its Crossgates roots. 

The deal will also ensure the opening of a brand new retail outlet in Leeds.
 
Chiltern Mills’ parent company, Chiltern Mills Holdings, was placed into administration yesterday and a deal was immediately secured by administrators David Wilson and Bob Maxwell of Begbies Traynor in Leeds to safeguard the future of the successful trading company, Chiltern Mills, saving all 170 full and part-time jobs at the firm.

“It was crucial the profitable Chiltern Mills business wasn’t dragged down by the historic problems of its holding company, and we have been able to ensure a solid business can now grow where it is strongest and with the guidance of its original founders,” said Mr Wilson of administrators Begbies Traynor Group.

“What is important is that absolutely no suppliers or customers will be affected by the reorganisation. Following the investment, the business is now in a much better position to trade well, even in the current economic climate,” he added.

Chiltern Mills has received new backing from Merlin Treymaine who founded the company in 1993 with his wife Jennifer, and another family member Paul Jones. 
The deal is the latest chapter in a colourful history for the firm.

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

A move of head office, investment in several unprofitable new outlets and huge losses in 2005/6 threatened to close the company down, and the Treymaines bought the firm back in an effort to turn around the business they had built up.

The failure this week of the holding company Chiltern Mills Holdings was blamed largely on long and expensive leases on several uneconomic properties, including the firm’s former head office at Sherburn In Elmet.

These had been draining resources from the largely successful trading arm of Chiltern Mills. 

“We have literally gone back to our roots,” said Merlin Treymaine. “And although it is business as usual in many ways we now have a robust platform from which to return to our success before the change of ownership in 2005.”

“As well as taking our head office home to Crossgates, we have a new flagship store opening in January 2009, and can look forward to a bright future for the Chiltern Mills brand that has a loyal customer base here, as well as a fantastic workforce.”

Chiltern Mills operates stores in Yorkshire, the East Midlands and the North East of England.