Fat Face outlines 2014 IPO

British fashion retailer Fat Face is weighing its options to go public on the London Stock Exchange in the next twelve months. The clothing brand has added Citi and Jefferies to its financial advisors to assess a flotation. In December, 2013 Fat Face appointed Lazard for financial

advisory on a potential initial public offering (IPO). At the time, the fashion retailer was said to be "reviewing all options".

Following a strong performance over Christmas, Fat Face now counts not only with Lazard but also on Citi and Jefferies to advise on a potential floatation later this year. According to Sky News, Canaccord Genuity is quite likely to join the retailer’s financial advisory body.

Fat

Face appoints financial advisers for potential IPO

Private equity group Bridgepoint acquired Fat Face for 306 million pounds in 2007, having had invested substantially into the brand three years ago after tough trading led the business severely damaged, remind market sources close to the matter.

With a potential flotation in London in the pipeline and former boss of Asda’s George division, chief executive Anthony Thompson, on the lead, the retailer is now focused on expanding into North America and strengthening its online proposition with the launch a dedicated US website next year.

Fat Face seems to be going through a 360-degree turnover plan, boosted by the positive outcomes of its strategy of avoiding offering heavy discounts in the run-up to Christmas. Last released figures show the wise of a movement that has helped company’s sales by a 5 percent over the five weeks to 4 January, while total sales rose by 15 percent in the first half of the financial year to 98.8 million pounds.

Fat Face’s would closely follow Bonmarche’s IPO in time, as the latter floated on London’s alternative market (AIM) in November last year, at 200 pence a piece, giving the company a valuation of 200 million.

As analysts at DLA Pipper Australia have noted recently, the Bonmarché IPO is particularly notable, not only as a significant turnaround for the business itself, yet as a solid indicator that retail and the high street fashion market are emerging from the downturn and positioning themselves “to experience significant growth and recovery and reach a point where they are able to bring themselves to market”.