• Alteri Investors paid an undisclosed sum for the equity share in Austin Reed
  • Austin Reed was previously owned by Darius Capital
  • The buyout follows Austin Reed’s appointment of turnaround consultancy AlixPartners

 

Austin Reed has been bought out by Alteri Investors less than a year after the firm provided a £6m loan to the struggling menswear retailer.

The upmarket fashion retailer has been bought out by Alteri Investors following the firm’s loan to enhance Austin Reed’s operations and multichannel offer last May.

Alteri has acquired the retailer’s loan notes and shareholder capital from Darius Capital.

Austin Reed is the most recent in a line of beleaguered UK retailers that Alteri has invested in.

The firm acquired Jones Bootmaker and Brantano in October 2015. When Brantano went into administration in January, Alteri bought back 81 of its shops and 59 of its concessions.

Austin Reed has struggled in recent years. Over the past 12 months the 116-year old retailer has undergone a CVA, shuttered 31 of its stores and is selling its 35,000 sq ft Regent Street flagship.

The retailer also sought advice from turnaround consultancy firm AlixPartners earlier this month.

Alteri Investors chief executive Gavin George said: ”The fourth quarter of 2015, and to an extent the first quarter of 2016, have been tough for all clothing retailers and Austin Reed is no different.

”We decided to acquire the equity and shareholder loans to protect our position as secondary lenders to Austin Reed, behind Wells Fargo who remain senior lender. We will work with Nick Hollingworth, Alan Charlton and Alix Partners, who have been engaged by management to examine Austin Reed’s financial position and strategic options.”

George said that it was premature to speculate on developments at Austin Reed. He said: ”Alix have been on board for eight days and are looking at the short and medium term liquidity issues. We are expecting to inject further liquidity and month end salaries are being paid in full.”

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