• Mountain Warehouse hires Rothschild to ‘explore options’
  • Any IPO could value the retailer at £200m, creating windfall for majority owner and boss Mark Neale
  • Funds would be used to pay down debt and further expand the 190-store retailer

 

Mountain Warehouse is mulling a £200m IPO and the outdoor retailer has hired investment banker Rothschild to advise on the process.

Any IPO could result in a windfall for majority owner and founder Mark Neale, who is thought to own about 85% of the company.

Mountain Warehouse, which launched a specialist women’s athletics clothing brand and stores in November, will use the funds raised from an IPO to pay down debt and increase its group store count from the 228 it currently operates. 

The retailer is also eyeing further overseas expansion, including in North America where it already has 23 stores. It also operates shops in Germany and Poland.

Mountain Warehouse posted a 14.7% like-for-like surge over Christmas as it capitalised on upping its premium ranges. 

In May, it reported pre-tax profits were up 25% to £12m for the year ending February 28 after sales increased 20% to £109.9m.

Fashion retailer Joules is also eyeing a float after hiring Rothschild at the end of last year. The two would follow in the footsteps of DFS and ScS, which both launched successful IPOs last year.

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