Clairfield advises The Works on an MBI
The Works, discount retailer of books, arts & crafts, toys, games and audio-visual products, performed an MBI.
The Works is a discount retailer of books, arts & crafts, toys, games and audio-visual products. It is headquartered in the West Midlands and operates over 300 stores across the UK and Ireland.
The Works entered into administration in 2008 owing nearly £80m to its creditors and HSBC. Hermes, the private equity owner paid GBP 50 million to acquire the business a few years before and following a number of strategic and management changes, performance deteriorated. In the year prior to administration, the business lost over GBP 10 million.
Clairfield orchestrated a deal to acquire the trade and assets from Kroll the administrator which has allowed HSBC to recover over GBP 20 million of debt and safeguard the future of the business that would otherwise have been closed.
Under a new management team, the store portfolio was rationalised and the strategy was returned back to the core principles that had made the business a success historically.
The MBI was backed by a substantial investment from Endless, the buyout and turnaround fund, and HSBC Bank.
The Works has consistently made operating profits of between GBP 8 million and GBP 10 million and continue to grow driven by new store openings and investment in online presence.
Consumer & retail
MBI
Advisor to The Works
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