Consumer Markets

Retail

Deals Activity: Low

Restructuring Activity: Very high

Retail

The number of deals within the Retail sector has remained relatively stable since 2018, except for a pandemic related spike in the first quarter of 2021. The first quarter of 2023 did not deviate from the norm, with 63 deals seen in the sector. Notable deals executed include:

  • The acquisition of Matalan by Invesco, Napier Park Global Capital, Tresidor Investment Management and Man GLG through a £250m debt-to-equity conversion.
  • The acquisition of In The Style by Baaj Capital through a £1.2m public-to-private LBO.
  • The sale of Monica Vinader to Bridgepoint Advisers and Piper Private Equity.

Deal activity in the sector has been influenced by cost inflation and rising interest rates putting pressure on margins and dampening demand. This presents opportunities for operators with stronger balance sheets to expand their market share via strategic acquisitions.

Restructuring activity in this sector remains very high, having remained at this level consistently for the last four years. Fears of a recession and deterioration in personal finances are forcing consumers to trade down, seek out value and delay large purchases, leading to increased competition on price.

Deals activity in Retail

Restructuring activity in Retail

High Street Fashion Retailer

Supported an international clothing retailer with over 600 stores across six countries and an ecommerce platform selling to over 100 countries to identify initiatives to rapidly reduce its cost base.

HMV Retail Limited

We were appointed administrators to HMV, the largest high street retailer of music and DVDs in the UK.

We traded 129 stores whilst seeking a sale of the business. Following extensive and complex negotiations, a sale of the business was achieved, preserving the majority of sites and almost 1,500 staff.

Find Your Expert

Will Wright is Head of Consumer Markets Cluster. This includes Retail as one of three core segments. Stuart Reid drives our approach to the Retail sector nationally, supported by Will Wright and a wider team of regional specialists. For a full list of our senior people with experience in this sector use the button below.

Our senior team
Will Wright
Stuart Reid