Lighting specialist Ryness deemed ‘attractive asset’ as it goes up for sale

An information memorandum has been prepared and adviser Spectrum Corporate Finance has been appointed , but sources close to the situation said the sale process is at a very early stage.

The London-based retailer, which has 12 stores and six wholesale outlets, sells lighting, gadgets and electrical products.

One source said: “The company has had its best February in two years and has beaten the market in the run-up to and after Christmas. The business is in robust shape.”

Gross turnover including VAT is expected to approach £13m in the year to June 2011, up from £11.6m the year before.

The source expects a sale to go through in the next few months and anticipates “quite a lot of interest given it’s an attractive retail asset”.

A separate source said there is scope for expanding the business, which specialises in light bulbs.

Epic, which also has stakes in retailers Whittard and Past Times, has held a majority stake in Ryness for eight years.

Management, led by managing director James Shortridge, have no plans to leave the business in the event of a sale, it is understood.

Retail Week Knowledgebank director Robert Clark said: “Ryness is very niche but you could argue that Robert Dyas was that size once and it was very regional too. There is scope for a roll out of Ryness, and Robert Dyas has managed something along those lines, although it encountered problems.

“There’s always a place in the market for a specialist but you must keep evolving in the marketplace.”

Ryness, Epic and Spectrum declined to comment.