Major high street beauty chain ‘to be SOLD’ in £300m deal affecting more than 76 stores and 1,000 workers
A MAJOR high street beauty chain is reportedly set to be sold in a £300million deal which will affect dozens of stores and hundreds of workers.
The owner of Space NK has reportedly picked bankers to handle a sale of the makeup and skincare shop.
Raymond James has been hired by private investment company Manzanita Capital to supervise an auction that will take place later this year, Sky News understands.
It is believed that Manzanita, which has run Space NK for more than 20 years, has not yet decided when to sell one of the most well-known beauty stores in the UK.
Space NK’s valuation may range from £300 million to £400 million given its financial success.
Manzanita, the company that also owns the luxury skincare brand Susanna Kaufmann from Austria and the French perfume firm Diptyque, is reportedly unsure about whether to sell a minority or majority stake in Space NK.
Space NK, called after Nicky Kinnaird’s initials, was founded in 1993 and operates out of 76 locations with over 1,000 employees.
It specialised in luxury skincare and makeup goods and has demonstrated strong trading performance since the Covid pandemic.
Its earnings before interest, tax, depreciation, and amortisation nearly tripled to almost £6million in the year ending March 25, 2023, according to its most recent reports filed with Companies House.
Manzanita had examined a sale of Space NK in 2018, hiring Goldman Sachs to perform a strategic evaluation, but chose not to proceed with an acquisition.
The Sun has contacted Manzanita Capital for comment.
It comes after a popular high street discount chain was sold in a deal affecting more than 300 stores.
The investment group Fortress has struck a deal with the owner of Poundstretcher.
The bargain chain, which has 322 sites across the UK, has been owned by businessman Aziz Tayub for the past 18 years.
Fortress has a history of buying up brands – it snapped up Majestic Wine back in 2019 before buying Punch Pubs in 2021.
The deal will not have any impact on customers, staff or stores.
Ahsan Aijaz of Fortress Investment Group said: “Poundstretcher is an exciting business in a critical part of the UK retail sector, and we recognise its importance to consumers across the country.
“Fortress believes in empowering management teams to deliver their strategy and we look forward to working with the team to invest in and grow Poundstretcher.”
Retailers closing stores in 2024
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online are also taking a toll, and many high street shops have struggled to keep going.
Here’s a list of all the big-name brands closing stores this year:
- Argos – The brand announced plans to close 100 standalone UK branches last year as it looks to move away from the high street and focus on expanding its presence in supermarkets.
- B&Q – The chain has over 300 shops across the UK, so chances are you have one near you, but some stores have closed in recent months.
- Boots – The health and beauty chain announced that it would be closing 300 stores last July. Closures are ongoing and this will see the retailer’s estate reduced from 2,200 to 1,900 shops.
- Clintons – Clintons mulled plans to close 38 shops in a bid to avoid insolvency late last year. We’ve listed the stores affected.
- Costa Coffee – The caffeine giant has around 2,000 sites nationwide, so chances are you’ll have one near you. The chain has shut the doors to dozens of its sites recently. We’ve revealed which stores are due to close this year.
- Iceland – The supermarket has more than 900 stores but closed nearly two dozen sites in 2023, and more selected shops are due to shut.
- Lidl – The supermarket, which has 950 stores, is changing up shop locations, which has meant that some stores have to close. But the retailer is also looking to open 12 new supermarkets.
- M&S – M&S, which runs 405 stores across the country, has been closing a string of branches across the country in a blow for shoppers. It’s not all bad news, though, because the chain also has big plans to open dozens of new shops as well.
- Trespass – The firm announced in July last year that it was closing six branches, but more are on the way.
- WHSmith – The retail giant, which runs over 1,100 stores, has shuttered eight stores since March 2023, but more are coming.