New owner looks to exit Lombok after 10 months

Privet Capital has not yet initiated a full sale process, nor put together an information memorandum, but it is understood it wants to sell the business within the next few months.

A source close to Privet Capital claimed the decision to dispose of the business was not due to any performance issues.

“Lombok is performing much better now,” the source said. “Turnaround investors often implement operational changes fairly quickly and do not necessarily hold investments for as long as mainstream private equity firms.”

Privet Capital acquired 14 of Lombok’s 19 stores when it bought the retailer out of pre-pack administration on July 29, after it suffered declining sales in the recession.

Managing director William Landale stayed on at the business, which bolstered its management team earlier this year by hiring Martin Toogood, boss of defunct furniture retailer Ilva, as chairman. It has also drafted in former Tesco executive Stuart Lewis as retail director, who started this week.

Last month Landale, who did not return calls this week, said that Lombok was “trading profitably” and that like-for-likes this year were showing “an uplift”.

Privet Capital declined to comment on the sale.