Liberty department store sold for 300 million pounds

Liberty, the iconic Tudor department store in the heart of London's Soho, has been sold in a deal valuing the luxury retailer at 300 million pounds.

BlueGem Capital, a private equity group, bought the store for 32 million pounds in 2010 from MWB, a property investment and development business, and is now selling its 40 percent stake to Glendower Capital.

Liberty was loss making

A decade ago, Liberty was loss-making, but over time and with steady investment it revamped its beauty, menswear and fabric businesses, more often than not focusing on niche segments where it has a leading edge. The move proved profitable, making the beloved store a retail destination to be reckoned with alongside Harrods, Harvey Nichols and Selfridges.

Liberty was once listed on the London Stock Exchange, yet was making losses for years when it was operated by MWB. 25 percent of MWB's shareholders were against the sale of the iconic store in June 2010. In the same year MWB sold Liberty's flagship building on Regent Street, which was adjacent to its Great Marlborough Street site. The space is currently leased to H&M Group's COS brand.

Liberty's turnover was 133 million pounds in the year to February 2018, an increase of 8 percent year on year, while pre-tax profits more than tripled to nearly 7 million pounds. According to the Guardian, approximately 60 percent of the store’s profits come from selling own-label merchandise.

The department store began its story in 1875, when founder Arthur Lasenby Liberty borrowed 2,000 pounds from his future father-in-law and took a building on Regent Street, London with just three dedicated staff.

The building is now a heritage listed London icon and a bonafide destination for its design, cultural collaborations and inspiring curation.

Photo credit: Liberty website