SKG Capital, the retail special situations family office, has said it will invest £20 million in retail and consumer businesses over the coming year.
The investment will target acquisitions of privately-held regional businesses including those based in the East Midlands.
The news follows fast on the heels of the company’s turnaround of bedding and linen retailer Julian Charles, which it acquired last year.
As Britain’s high street continues to tailspin, and Government support for retail businesses winds down, SKG says its £20 million acquisition hunt could provide a vital lifeline for many businesses that the pandemic has adversely impacted.
The firm specialises in working with retail chains and allied businesses in the retail supply-chain, including manufacturers and logistic companies. SKG says it expects to acquire a number of businesses over the next 12 months.
The buying spree is being led by Chris Althorp-Gormlay, Founder and Managing Partner at SKG Capital.
Chris Althorp-Gormlay said: “There are many reputable businesses that the downturn has adversely impacted over the last 12 months. Their balance sheet might have taken a hit, but their potential remains as strong as before, providing they receive the right support and investment.
“These are the businesses that we want to talk to. We have the in-house capability, expertise, and the capital to help them through the short-term storm, return them to long-term profitability, and ultimately rebuild a successful business with a bright future.
“One of our primary focuses throughout the process is to protect jobs and the supply chain. Turning around these businesses must be done in a way that preserves the wider impact they have on the local community and wider economy.”
The news comes as the day of reckoning for retailers fast approaches with the high street reopening next month. As lockdown eases and government support schemes such as furlough are withdrawn, many well-known British brands will have no choice but to shut up shop, unable to ever recover from an unprecedented 12 months.