All Saints bought by investment firms

After weeks of speculation, All Saints has found a partner to bring it out of its financial woes. The company is expected to be bought by private investment firms Lion Capital and Goode Partners for £105 million. All Saints has been looking to find a buyer

for stakes held by the collapsed Icelandic banks Kaupthing and Glitnir for some weeks now. The deal with Lion Capital, which also owns La Senza and American Apparel, will save the retailer from administration and secure hundreds of jobs. It is believed that the All Saints chairman, Kevin Stanford, will retain a 15% stake in the business.

Founded in 1994, AllSaints grew rapidly opening 62 shops and 45 concessions across the UK, US and Europe. In its most recent financial year, the company achieved revenues of over £200 million but hs accumulated debts of around £53 million.

Lyndon Lea, partner at Lion Capital, commented: “We are very excited to invest in a brand with such enormous international potential. All Saints, in our view, combines leading product and store design with an online presence well beyond many other retailers of its size. We look forward to partnering with Kevin and the management team to continue the success of the business.”

Kevin Stanford, chairman, added: “I’m pleased to have the support of two private equity firms, both of which are focused on the consumer sector, to put All Saints on a solid financial footing. This equity-funded capital structure will now enable the management team, led by Stephen Craig, to realise the full potential of All Saints, consistent with our vision.”

Image: All Saints Spring 11 campaign