Partner Article

American billionaire backs Bathstore buy-out from Leeds turnaround firm Endless

An American billionaire is the surprise backer of a management buyout of Bathstore, the British high street bathroom chain from Leeds turnaround firm Endless.

Warren Stephens, a private equity and banking tycoon from Arkansas, has teamed up with Bathstore’s senior bosses, led by Gary Favell, the former chief executive of failed furniture retailer MFI.

According to the Telegraph Stephens is chairman of an investment house founded by his late father Witt Stephens. It has interests in private equity, asset management, and insurance. However, the deal was made through a family trust.

The consortium has bought the retailer from Endless, a turnaround investor, which has owned the company for the last two years for an undisclosed amount.

Bathstore has 170 shops, but it is understood that Endless made a fivefold return, having invested roughly £11 million in Bathstore. Endless bought the chain for £15 million.

Endless installed Favell and focused on improving online growth, customer service and new products. Under the firm’s ownership, sales have increased 30pc and earnings have jumped by £5 million.

Rothschild advised Endless on the sale process.

This was posted in Bdaily's Members' News section by Clare Burnett .