For Sale: All Saints Clothing Store at £140 Million
The British clothing store, All Saints, has called in business consultants from Ernst & Young to advise on the sale of the high street retailer initially valued at £140 million.
The clothing store‘s sale comes two years after one of its stakeholders, the Icelandic bank Glitnir, has declared bankruptcy, and whose winding-up committee has recently won court approval in New York to reopen the fraud case against seven individuals and the bank’s former auditor PricewaterhouseCoopers.
The defendants were sued for failing to address misrepresentations in the financial statements of failed Icelandic banks Landsbanki and Glitnir, which allegedly committed overstatements in their financial reports.
Reports are saying that administrators of the failed Icelandic banks Glitnir and Kaupthing, another minority stakeholder of All Saints, urged for the sale of the clothing store to invest in the retailer’s over 70 stores in UK and abroad.
Ernst & Young has been reported to be in talks with serious buyers, while its owner, the British-Greek retail entrepreneur Kevin Stanford, is understood to be preparing to sell his shares upon the sale of his clothing store.
Stanford established All Saints in 1994 to produce a clothing line for the younger generation. Its products include menswear, womenswear, children’s wear, home furnishings and accessories.
Early this month, KPMG consultants have also been called in to restructure another retailer in jewelry business, HPJ, which is based in Stoke on Trent. The retailer has already been sold to Gemstone Retail Ltd and Gemstone Operations Ltd, firms bought by Gordon Brothers in December.
Insolvencies of HPJ retailer and the clothing store came hard on the heels of the worse sales during the Yuletide season last year, with the snow having hampered the trade of most retailers in the high streets according to accountants Deloitte.