Management buy out TJ Hughes

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The Independent Online

The discount department store TJ Hughes has been sold to its management in a private equity-backed deal. The Liverpool-based firm, which has 57 stores and more than 4,000 employees, is being bought for an undisclosed sum by a team led by recently appointed chief executive Beatrice Lafon with financing from turnaround specialists Endless.

Its previous owner Silverfleet – the private equity group that snapped up shoe retail firm Office in December – bought TJ Hughes for about £70m in 2003. The sale follows recent reports that TJ Hughes has been hit by the withdrawal of credit insurance for its suppliers after a battle to secure working capital.

TJ Hughes is completing a refinancing with Burdale, which is an arm of Bank of Ireland.

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