These boots were made for walking, sorry I meant profit . . .

Last Friday saw the announcement that the UK shoe retailer, Jones Bootmaker, was being sold to Macintosh Retail, the Dutch stores group. What’s interesting about this particular deal is that Jones Bootmaker was originally bought by its management team back in 2001 and was backed by two Icelandic private equity firms. However, with the onset of the banking crisis and the complete collapse of Iceland as a source of funds, the existing management stepped back in March 2009 to invest more funds and rescue the business. The chairman and chief executive, Peter Phillips and Ken Bartle, are apparently to share in the bulk of the estimated £40m sale proceeds.

I would imagine that the managers at Kurt Geiger who were backed by Graphite Capital Management in an MBO of the business from Barclays Private Equity back in  February 2008 will be watching this deal with interest.

This deal really is testimony to the fact that some fundamentally sound businesses got caught up in the financial crisis by virtue of them being private equity-invested companies – and that it is possible to emerge intact and attractive to other corporate suitors.
 

Filed under: retail, UK, PE