B&M Bargains managing director Simon Arora said: “We have plans for 15 UK stores in the first quarter next year. Sales are buoyant.” Previously, the 49-store retailer said it would open 12 stores a year for the next three years.
Deloitte is advising B&M on which banks could assist it with the refinancing. The retailer is understood to be raising the money through bank debt. However, Arora ruled out a sale of the business.
Retail Knowledge Bank senior partner Robert Clark said: “Retailing is not buoyant at the moment, but B&M’s end of the market could really benefit from the situation, because people are looking for value. It is better placed than mainstream retailers, although it is still going to be tough next year.”
The group was bought by brothers Simon and Bobby Arora from private equity firm Phildrew Ventures three years ago, when it was making a loss. In July, Simon Arora told Retail Week that B&M had almost doubled its turnover to£120 million since the acquisition and had doubled its store numbers.
Clark believes that because many hard-pressed retailers are likely to exit space in the new year, B&M could pick up some property bargains.
He said: “There is likely to be a surplus of secondary locations that would be ideal for B&M.”
Clark added: “If B&M gets it right, it can really pay off. However, accelerated expansion is also untested and, as a small- to medium-sized company, it may not meet store opening targets.
“It has got a format it is obviously confident with, but store locations will be key.”
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