Womenswear retailer Hobbs set to consider bid interest

British womenswear retailer Hobbs is to put itself up for sale after management turned their back on a stock market listing, it was reported today.

The group – worth an estimated £90m (€133m) – is being circled by a host of private equity firms and is expected to provide detailed financial data next month, according to The Times.

Potential buyers are understood to include 3i, Phoenix Equity Partners and Change Capital Partners, which is headed by former Marks & Spencer chairman Luc Vandevelde.

The decision to rule out a stock market listing was taken following a review of the strategic options for the group led by investment bank Hawkpoint, the newspaper reported.

Any sale at a price of more than £30m (€44.3m) would represent a profit for managers who led a buyout of the business in 2002 from founders Yoram and Marilyn Anselm.

The management team are believed to hold a 20% stake in the business with the remainder with Barclays, which provided financial support for the acquisition.

Managing director Nick Samuel holds a 4% stake in the company and stands to make around £3.5m (€5.2m) if a sale is agreed.

But the newspaper report said that Barclays had not ruled out a partial sale or a deal that would allow Hobbs managers to raise their stake in the group.

Hobbs was founded in 1981 and sells footwear, women’s clothing and accessories from 54 stores in the UK and Ireland. It also has a number of concessions in department stores, including Selfridges and Fenwick.

Expansion plans outlined in June include possible openings in North America and the Far East.

Hobbs has performed strongly at a time when other womenswear retailers have endured a tough time, with profits during the 53 weeks to January 31 rising 93% to £8.5m (€12.6m).

Last year, it grew sales by 32% to £51.5m (€76.1m) – in contrast to ranges such as Country Casuals which reported a decline of 6% over the same period.

Retailers have repeatedly been targets for raids using private money in recent months, with fashion chain Oasis snapped up by Icelandic group Baugur for £115m (€169.9m) in November.

New Look was taken private in March, while WH Smith and Marks & Spencer have also received bid approaches this year.