Homeware chain Lakeland is close to being taken over by the ex-owner of Homebase and HMV, according to reports. Lakeland is a family-run business that is famous for its kitchenware, cookware, and other home products.
The business hired financial advisory company Teneo back in January to explore options for the company, including a potential sale, as part of plans to raise tens of millions of pounds in new funding. Sky News now reports that Hilco Capital, the ex owner of Homebase and HMV, could formally agree a deal to snap up Lakeland in the coming days.
Lakeland is said to have held discussions with various potential other buyers, including Modella Capital, which recently acquired WHSmith’s high street shops. The business started its life as Lakeland Plastics when it was established in 1964 by Alan Rayner, who began by selling plastic bags from his garage in the Lake District.
The company is headquartered in Windermere, Cumbria, but has nearly 60 stores across England, Scotland, Wales and Northern Ireland. The update comes as retailers across the UK face increased costs this year, including a hike in employer National Insurance contributions which came into effect this month.
The rate of National Insurance paid by employers has risen from 13.8% to 15%, while the earnings threshold has been lowered from £9,100 per year to £5,000. On top of this, minimum wage has also gone up. The minimum wage for workers aged 21 and over has risen from £11.44 an hour to £12.21 an hour, from £8.60 an hour to £10 an hour for those aged 18 to 20, and from £6.40 an hour to £7.55 an hour for under-18s and apprentices.
Retailers have warned that the changes would hit businesses with millions of pounds of extra costs, with higher prices being passed on to customers. In more retail news, Sainsbury’s closed its remaining 61 in-store cafes last week, saying the majority of its shoppers don’t use its cafes regularly.
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The grocer has also unveiled plans to shut its remaining patisserie, hot food and pizza counters, and will cut head office jobs over the next few months, resulting in the loss of about 20% of its senior management roles. These changes combined will result in more than 3,000 jobs being cut. On top of this, an existing discount on retail business rates has fallen from 75% to 40%.
Meanwhile, shoe chain A.G. Meek closed its branch in Eastgate Street, Gloucester, last weekend after 60 years of trading. Owner David Meek said the shop has struggled since the Covid pandemic and also blamed rising employer National Insurance costs.
A.G.Meek opened its first shoe shop in Gloucester in Westgate Street in 1965 and moved to Eastgate Street in 2021. The closure means the shoe chain has just four shops remaining, all in Wales.
Elsewhere, Aldi is closing its branch in Llanelli, Wales, on April 27. It means shoppers will have to visit the next nearest Aldi in Trostre Road, which is around 1.5miles away. One devastated shopper said on Facebook: “There is a lot of elderly people who rely on this store it needs to stay.” Another said: “There be nothing worth going to town for soon.”
HMV has announced it is closing its Cornmarket Street in Oxford on April 22 after the landlord decided not to renew its lease. The shop is based in the Clarendon Centre, which is undergoing refurbishment that isn’t due to finish until 2029. HMV is actively looking for a new space in Oxford, but reports suggest staff at the Cornmarket Street store have been warned they are “regrettably” at risk of redundancy.
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