Howards Storage World has been sold to an as yet unnamed buyer, said to be an experienced retailer with both international and local retail and franchisee experience, according to services firm Deloitte.
Following a restructure of the Group’s operations, Deloitte said the business and its franchise network has been sold, though the identity of the buyer and the terms of the sale are confidential.
“The HSW Group has been operating in a challenging market for some time, characterised by the failure of a number of established players in the retail sector due to ongoing pressures from deterioriating sales and margins in a highly competitive environment,” said David Lombe, partner, Deloitte Restructuring Services who was appointed voluntary administrator along with Vaughan Strawbridge in December last year.
“A wide-ranging sale of business campaign was launched on our appointment, and we have been right-sizing the business for sale since.
“Achieving a sale in the current retail environment is an outstanding result and is directly attributable to the restructuring undertaken in the Howards business.
“In the space of two months, we have had to implement a number of restructuring strategies to help turn the HSW Group around and into a viable business, and able to continue to operate most of its own company stores, and to provide support to its franchisees.
“So achieving this sale is a significant outcome, especially the ability to retain almost 80 per cent of the store network, retaining around 160 jobs, and maintaining supplier relationships, demonstrates the strength of the brand and its niche offering.”
46 stores are included in the transaction.
“Importantly, the result could not have been achieved without the understanding and support of employees, suppliers, landlords, and the franchisees,” Lombe said.
Established in 1997, the home storage solutions retailer had a national footprint of 58 stores.
More to come.