Hobbs in £30m management buy-out

Barclays Private Equity has backed the £30m management buy out of Hobbs the design led manufacturer and retailer of ladies clothes, shoes and accessories. As part of the deal Barclays Private Equity will take an 80 per cent stake, with management taking 20 per cent.  

Hobbs offers its clientele what is called a capsule wardrobe, where each component (garments, shoes and accessories) form a perfect match. Hobbs designs are well known for their contemporary style, quality, cut and material.  

Hobbs was founded in 1981 by Yoram and Marilyn Anselm and now trades from 34 locations and employs approximately 550 staff. Turnover forecast for the year to January 2003 is c £40 million.  

Steven Silvester of Barclays Private Equity, commented: "Founded 20 years ago, Hobbs has witnessed consistent growth and is an excellent business. Over the next few years, we intend to build on that success and increase the number of trading locations. Hobbs is well placed both in terms of its supplier relationships and its increasing customer base to meet these expansion plans".  

Commenting Nick Samuel, Managing Director said: "Hobbs has developed a loyal clientele among modern women. The strength and longevity of the brand is proven by the fact that more than 80% of Hobbs' customers are repeat buyers. Our business is insulated from the risks associated with the high fashion end of the clothing market - our designs are classic with a fashionable twist".  

The MBO team is led by Managing Director Nick Samuel, who joined the business in August 2001 from Karen Millen. He will work alongside Karl Henry, Design Director and Mike Spearing, Development and Operations Director. Other members of the management team include: Sarah Davey, Staff Training Director and Nick Standish, Merchandise Director.  

Nick Samuel is one of the leading managers in this sector, having 10 years experience at Karen Millen which saw turnover rise from £1 million to more than £55 million during his service as Finance Director.  

Steven Silvester and Nathan Elstub led the investment for Barclays Private Equity. Debt funding was provided by Barclays Leveraged Finance (Mark Bickford and Mike Dennis).  

Barclays Private Equity's advisers on the deal include BDO Stoy Hayward, KPMG, Addleshaw Booth & Co, and OC&C.