Iceland group buys Jane Norman fashion chain

British fashion chain Jane Norman was today sold for £117.4m (€170.4m), in the latest deal involving the Icelandic investment group Baugur.

The retailer, which has 95 stores and concession outlets, has been bought by a consortium featuring Baugur and Kaupthing Bank, also based in Iceland.

Jane Norman will join a Baugur portfolio that already includes Hamleys, Iceland shop owner Big Food Group and the Goldsmiths jewellery chain.

On the fashion side it has Oasis stores, Karen Millen, Coast and Whistles, although a spokesman said Jane Norman would be run as a separate business.

Today’s deal also involves Jane Norman chief executive Saj Shah, who worked with the current owner Graphite Capital on a management buyout in 2003.

Since that deal, Jane Norman has opened 48 outlets and reported sales of £70m (€101.5m) and earnings of £14.3m (€20.7m) in the year to March.

Mr Shah said: “It is now time to move on to a new phase and we believe Baugur and Kaupthing are the perfect partners to take this business forward.”

It is thought that Baugur and Kaupthing will each own around 40% of Jane Norman, with the rest in the hands of the management. Plans for the company’s future are likely to include overseas expansion and more product ranges.

Graphite said it had achieved a total return of 2.9 times on its investment.