Family-owned kitchenware retailer Lakeland is reportedly on the verge of a management-led buyout, with investment firm Hilco Capital in advanced negotiations to back the deal.
Based in the scenic Lake District town of Windermere, Lakeland operates around 60 retail outlets across the UK and employs roughly 1,000 staff. The company, known for its range of innovative kitchen and home products, has faced increasing financial pressures in recent months, prompting a search for strategic solutions. Founded in 1964 by Alan Rayner, Lakeland remains under family ownership, currently managed by Rayner’s three sons.
Sources familiar with the matter told Sky News that talks are progressing between Hilco, Lakeland’s leadership team, and shareholders to transfer control of the business. If successful, the agreement would see Lakeland’s management take the reins with financial support from the restructuring-focused investor.
Earlier this year, Lakeland brought in consultancy Teneo to help explore options for the future of the business. Meanwhile, PricewaterhouseCoopers has been advising the company’s primary lender, HSBC, which is reportedly preparing to exit its involvement.
Lakeland has also attracted attention from other potential backers, including Modella Capital, the investment firm behind WH Smith. At the same time, the company has been looking to secure new funding to combat mounting operational costs, including increased national insurance contributions for employers.
The outcome of the ongoing negotiations could mark a significant shift in the company's direction as it navigates a challenging retail environment.
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