Hunter Acquires Clothing Chain USC

Scottish entrepreneur Tom Hunter has expanded his retail empire with a GBP45 million swoop for clothing chain USC. The multi-millionaire majority owner of Qube, Birthdays, Gadgetshop and d2 bought the Livingston-based firm through investment vehicle West Coast Capital. It will continue to be run by the existing management team.

The entrepreneurs, who created the 40-store business 15 years ago, said they were "very proud" to have made the sale. They gave no indication as to what they will do with the cash. USC's biggest shareholder, Bridgepoint, said it had decided to exit the company seven years after its initial cash injection. It is believed to have trebled its money.

A Bridgepoint spokesman said it had not formally put USC up for sale, but had been unable to resist the tabled offer. He added: "Usually we hold on to investments for three to five years, so the time was right."

USC has eight stores in Scotland, one in Belfast and 31 in England. It employs 1,500 staff. A spokesman for Hunter said that the group's current store opening rate of two to three a year showed the potential for future growth.

Co-manager Stephen Craig said: "We're delighted to take control of the firm. We have a plan in place and it will be business as usual."

But a big-name acquisition still eludes Hunter. He lost out in swoops for Allders and House of Fraser in late 2002, while a GBP540m bid for Selfridges was trumped by Canadian billionaire Galen Weston.