Wed, 26 Apr 2023 | ADMINISTRATION
Organic supermarket chain Planet Organic has been acquired out of administration by a company spearheaded by its founder. The deal has seen the business and the majority of its assets, including ten of the company’s stores, acquired from administrators, but four of the chain’s stores will close.
Planet Organic had 14 stores across London and the South East. Following the COVID-19 pandemic, the company had embarked on a new growth strategy, requiring significant restructuring. The company’s performance was also impacted by a decline in high street and city centre footfall, accelerated by COVID.
Despite reporting strong turnover, the chain ultimately became loss-making, with losses widening from £2.4 million in 2020 to £3.3 million in 2021. The company closed several stores and began exploring sale options in February 2023 as it sought to secure investment to support its growth plans.
However, Planet Organic ultimately fell into administration, with Interpath Advisory’s Will Wright and Chris Pole appointed as joint administrators on April 25 2023. Immediately upon their appointment, the joint administrators completed a sale of the business and the majority of its assets to Bioren Limited. Bioren’s shareholders include Renee and Brian Elliott, who founded Planet Organic in 1995.
Following the acquisition, Planet Organic will continue to trade from ten location in London. However, four sites were not included in the deal and will close with immediate effect. These are located in Bermondsey, Tottenham Court Road, Henley and a store in Teddington, that opened just two months ago.
The sale process was led by Interpath director Gareth Slater, who commented: "After a competitive process, we're delighted to have concluded this transaction which will see the Planet Organic name continue to trade and, importantly, protects a large number of jobs.”
"We know that the new owners have exciting plans for the business and we wish them the very best for the future and look forward to seeing the business go from strength to strength."
Joint administrator and Interpath head of restructuring Will Wright said: "Planet Organic is a well-respected brand with wonderful stores and hard-working people that genuinely care about the customer experience, which is why over the years it has grown a very loyal customer base."
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