SKG Capital is looking to capitalise on opportunities presented as the retail industry emerges from the Coronavirus crisis and has earmarked £20 million to spend on retail acquisitions over the coming 12 months.
The retail special situations family office SKG most recently acquired bedding and linen retailer Julian Charles last year and has since carried out a successful turnaround of the business.
SKG specialises in working with retail chains and allied businesses in the retail supply-chain, including manufacturers and logistic companies. The firm says it expects to acquire a number of businesses over the next 12 months.
The buying spree is being led by Chris Althorp-Gormlay, Founder and Managing Partner at SKG Capital, who is looking to hear from businesses thinking about selling or seeking investment and expertise after Covid.
Althorp-Gormlay, said: “There are many reputable businesses that the downturn has adversely impacted over the last 12 months. Their balance sheet might have taken a hit, but their potential remains as strong as before, providing they receive the right support and investment.
“These are the businesses that we want to talk to. We have the in-house capability, expertise, and the capital to help them through the short-term storm, return them to long-term profitability, and ultimately rebuild a successful business with a bright future.
“One of our primary focuses throughout the process is to protect jobs and the supply chain. Turning around these businesses must be done in a way that preserves the wider impact they have on the local community and wider economy.”
SKG says its team of retail experts "ideally places them to help some of those great brands that are set to collapse over the next six months".
Julian Charles was acquired during the height of the pandemic last year when it was saved from administration. SKG says it has taken the business from almost £1 million in the red pre-pandemic to £1.4 million in the black.
Former CEO of HMV Neil Taylor is an Equity Partner at SKG and a seasoned retailer who will be leading the acquisition process and working closely with the investee companies on their journey.
Taylor, said: “Many of the Government lifelines are ending, which will leave many credible businesses vulnerable to collapse, taking out thousands of jobs in the process. Covid has brought many good, valuable retail businesses to their knees.
“These are the types of businesses we specialise in working with. We have the track record, know-how and the funds to get them back on their feet, just like we have with Julian Charles one of Britain’s oldest brands, established in 1947.”
SKG has announced its plans two weeks ahead of the planned reopening of non-essential retail across England on 12 April.