The kitchenware and homeware retailer, which has about 1,000 staff, is understood to have appointed financial advisers from consultancy Teneo to explore appetite among speculative buyers
Kitchenware giant Lakeland is considering putting itself up for sale in a strategic move to safeguard its future, amid what it describes as a “challenging” retail landscape.
Financial experts from the consultancy Teneo are believed to have been enlisted to test the waters for potential buyers, as reported by Sky News. According to a representative from the company, Lakeland is exploring its options due to escalating costs.
They commented: “Lakeland is one of the UK’s most loved and trusted brands. In response to the challenging retail environment, we are considering a number of options to ensure a sustainable and long-term capital structure, which builds on our 60-year heritage as one of the UK’s most innovative homeware retailers.”
With approximately 1,000 employees, the homeware brand, known for selling items such as air fryers and food processors, operates out of 59 UK stores. However, it’s feeling the squeeze financially. In its latest published accounts for 2023, Lakeland reported facing down the toughest economic times in decades, resulting in a pre-tax loss of £2m.
Despite inflation-related price hikes dampening consumer appetite, the firm managed to maintain sales at £153m, consistent with the previous year. The documents reveal an HSBC credit facility that remains active until 2028. Teneo hasn’t made any statements regarding the speculation.
