A-Wear sold to Hilco Ireland

FASHION retailer, A-wear has been sold to retail restructuring experts Hilco for an undisclosed fee.

Hilco Ireland has also provided extended working capital facilities to A-wear to facilitate the business’s financial needs.

A-wear joint chief executive Mark Naughton-Rumbo said the sale and the provision of additional working capital is an important step for the company. “I would like to thank all of our lenders as well as our investors, for their tremendous efforts in completing this transaction,” he said.

The sale of the entire share capital of the retailer to Hilco Ireland was announced yesterday.

Paul McGowan, chief executive of Hilco UK, said: “We are delighted to have this opportunity to acquire one of Ireland’s strongest retail brands and look forward to providing operational assistance to A-wear management in the months ahead as the management team seek to address current market conditions in Ireland and develop its overseas markets.”

In 2007, A-wear was bought by its managers from Brown Thomas in a deal believed to be worth €70 million.

The deal was backed by British private equity firm, Alchemy Partners, which specialised in buy-outs, buy-ins and the provision of later stage development capital.

At the time the company operated 39 stores in Ireland and three in Britain.

In recent years, A-wear, whose clothes are aimed at the lower end of the youth market, has faced tough competition from international competitors.

Total sales at A-Wear for 2010 were €48m.