Management buy out at textiles company

THE senior management team at The Yorkshire Linen Company have acquired the business from its founders.

Ross and Kirsteen Leventhal are reducing their collective shareholding to 40%, from 95%.

The management team led by finance director Linda Shreeve, and including Neil Bowyer, Stephen Edmundson, Julia Wilson and Jeff Worrall are acquiring the business from the couple.

The Harrogate-based business has grown from its inception in Halifax in 1993 and now has 43 branches in the north of England, retailing home furnishings.

The company has 300 staff and turns over north of £18m.

Ross Leventhal said: “We are pleased to stay involved with the business as our exit will be phased over the next three years. There is a fantastic, loyal team here and, as a family business, we want to support them.

“The aim is to strengthen the existing business and then expand towards 100 stores over a five-year period.”

The deal was financed through company cash reserves along with a short-term loan from the Leventhals. A new holding company, YLC Holdings, has been established.

Ross and Kirsteen Leventhal were advised on the transaction by Christian Hunt, partner at Langleys Solicitors in York.

Mr Hunt said: “The Yorkshire Linen Company is a great retail success story for this region and we were pleased to help Ross and Kirsteen to secure a management buyout that opens up an exciting new chapter for the company.”

Tax advice to Ross and Kirsteen Leventhal was provided by Garbutt & Elliott.