Wed, 01 Jul 2020 | ADMINISTRATION
Shirtmaker TM Lewin will close all 66 of its UK stores as part of a pre-pack administration deal engineered by SCP Private Equity. The administration follows SCP’s acquisition of TM Lewin from Bain Capital through special purpose acquisition vehicle Torque Brands in May, which we covered here.
SCP says that TM Lewin will continue to operate online, where it generated over 30 per cent of its revenue last year. However, a statement from Torque stated: “The business is unable to sustain current rental agreements for its store network across the country. This has forced our hands to focus on a radical overhaul of the business model.”
"The Torque team has worked to assess all available avenues for the business model going forwards, but having done so, has formed the view that TM Lewin is no longer a viable going concern in its current format," Torque added.
"The decision to significantly reduce the scale of the business in order to preserve its future will regrettably result in job losses at TM Lewin, as a direct result of the closing of the store network as we right-size the business."
The administration will result in around 600 redundancies among the company’s 700-strong staff. With stores closed during the coronavirus pandemic, 650 of TM Lewin’s workers have been furloughed, with around 50 continuing to work on the company’s digital operations and supply chain.
In its most recent accounts, to the year ending February 23 2019, TM Lewin reported strong growth in its online business, led by an upgrade of its web platform and said it had made investments in its product range.
At the time, the company reported EBITDA of £6.58 million, up from £5.2 million the year prior, and turnover of £121.8 million, slightly up from £120 million in 2018. Its net assets were valued at £73 million, with fixed assets of £14.5 million.
Find businesses for sale here.
If you are looking for an exit, we can help!
Specialises in the manufacture and sale of hand-crafted and stylish personalised greeting cards and gifts for all ages and occasions. Highly skilled and experienced workforce that enables the company to offer a dedicated and customer-focused approach...
RELOCATABLE
Established Over 30 Years. Excellent Google Customer Reviews. Potential to Increase Turnover. Well stocked with Products. Top Quality Service & Great Prices. Offers invited.
FREEHOLD
Corporate and Celebrity Clients. Fantastic Reviews. Brand New Website. Huge Scope for Future Growth. This is a very exciting opportunity to acquire a specialist events business which has a wealth of experience and a list of fantastic social-media rev...
LEASEHOLD
|
28
|
|
Jun
|
Administrators hopeful of finding buyer for Bristol transport firm | ADMINISTRATION
Bristol-based transport, trucking and railroad firm Toogood ...
|
27
|
|
Jun
|
Administrators seek buyer for listed pharmaceutical company | ADMINISTRATION
Listed pharmaceutical firm 4D Pharma Plc has fallen into adm...
|
24
|
|
Jun
|
E-commerce imports retailer up for sale for £1.6m | BUSINESS SALE
Deals Incorporated, a Manchester-based e-commerce retailer t...
Sign up to receive our acquisition alert emails to get your FREE guide
|
18
|
|
Mar
|
TM Lewin seeks buyer after entering administration once again | ADMINISTRATION
A buyer is being sought for the business and assets of shirt...
|
28
|
|
Sep
|
Life insurer LV= in talks over potential takeover | BUSINESS NEWS
Mutually-owned life insurer LV= has confirmed that it is in ...
|
13
|
|
May
|
Torque Brands acquires menswear retailer T.M. Lewin | BUSINESS SALE
SCP Private Equity has agreed a deal to buy London-based men...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources